Starting from January 2014, Employees Provident Fund (EPF) will revise upwards the basic savings level of its members. The aim is to ensure its members have enough savings to finance their retirement needs.
The new quantum is RM198,000 by the age of 55 compare to RM120,000 at the current level. It will be equivalent to RM820 a month for 20 years from age 55 to 75. The new rates are benchmarked against the minimum pension for public sector employees which are currently at RM820 a month. This will avoid the monthly retirement income not fall below the poverty level.
The impact to this new revision is, members will need to have more funds in their account to be eligible to withdraw for the purpose of EPF Members Investment Scheme.
The table below is the current & new Basic Savings Level for EPF members.