00:00The Employees' Provident Fund may already be losing its place as a trusted nest egg for Malaysians
00:07as a result of a legacy of low wages.
00:10Recent data shows that nearly 74% of active EPF contributors have less than RM100,000 in their accounts upon retirement,
00:20a sum that will last just over five years for a single person, or only three to four years for a couple.
00:27That amounts to RM1,500 per month for a single person, or RM2,500 for a couple,
00:34which is even lower than the current minimum wage of RM1,700 per individual.
00:41It has been estimated that 85% of the Malaysian labour force do not earn enough to fall within the income tax-paying bracket,
00:49and with low wages, contributions to retirement funds such as EPF
00:54also remain low among a vast majority of the labour force.
00:58The EPF has estimated that one needs basic savings of RM390,000 upon retirement to meet the retirement income adequacy level,
01:08but this only highlights the gap between ideal and reality.
01:14Projected over a 20-year retirement period, it generates a modest monthly income of around RM1,300 to RM1,625 still short of the minimum wage,
01:26and according to the retirement fund, enough only to cover basic needs, but far from a comfortable lifestyle.
01:33As the cost of essentials such as food, healthcare and utilities rises in tandem with inflation and the cost of living,
01:42the RM390,000 may not even last the 20-year estimate.
01:47As the proportion of the elderly in Malaysia rises, so does the urgency to strengthen social protection systems,
01:54and rethink how we approach retirement.
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