Digest on Malaysian News

Ahmad Husni Hanadzlah, Deputy Finance Minister mentioned in the Dewan Negara that an average worker will have about RM120,000 in his Employee Provident Fund (EPF) account by the time he reaches the age of 55. However, 20 years from now RM120K would probably worth RM60,000, after 50% devalue.




At the rate the oil prices is going up and the loom recession and inflation, RM12oK savings probably worth RM12,000 (of current value).

And as usual, their is no plan or policy from the government to safeguard the income of retired workers. Rising oil price will jack up prices of all goods and services and average worker like you and me will be forced to dig deep into our pocket for spare cash, leaving us little or no savings.

Without stable income, the farmers and other individuals who are self-employed will even face harsher time by the time they retired.

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* High oil prices affect padi planters in remote Sarawak

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Extract from TheStar

Average worker will have RM120,000 in EPF

By ZULKIFLI ABD RAHMAN

KUALA LUMPUR: An average worker will have about RM120,000 in his Employee Provident Fund (EPF) account by the time he reaches the age of 55, Deputy Finance Minister Datuk Seri Ahmad Husni Hanadzlah said in Dewan Negara on Monday.

He added that the amount, which was calculated based on the person's working life of 30 years, would provide him with an average of RM500 in monthly returns for 20 years after reaching 55 years.

Ahmad Husni said the amount would enable him to meet basic expenditures.

However, the person must contribute more than RM120,000 to his EPF account to enjoy a more comfortable retirement life, he told Senator Ikhwan Salim Sujak.

Ahmad Husni said the EPF had strategies to ensure workers were prudent with their savings and they should invest their savings in proper schemes.

He also said EPF contributors were allowed to withdraw from Account II to buy a house or a second house if they had settled the loan on their first house.

To a question, Ahmad Husni said there were no plans to compel contracted or part-time workers to contribute to the EPF.

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