Deep, deep dive
- What is EPF?
- Who can invest in EPF?
- So why are EPF savings even important?
- How do you know if you are saving enough for your retirement?
- But why invest in EPF? What have their returns been like?
- What is the difference between the Conventional Savings Option and Shariah Option?
- When can I access my EPF savings?
- What is EPF’s new i-Invest platform?
- Practical tips
How do you know if you are saving enough for your retirement?
According to EPF, at the very least, you should have RM1,000 a month post-retirement at age 55 to age 75. This means when you retire at 55 years old, you should have at least RM240,000, but this really should be taken as the bare minimum that you’ll need for your retirement!
Here are their guidelines ( You can have a look at the amount in your Account 1 to see if you are on track to meet EPF’s Basic Savings amount):
Is RM 240,000 at age 55 enough to retire on? Well you may need more. A comfortable income for your retirement might be closer to RM2,700 a month or.
around RM568,000 when you retire at age 55 (This is assumes that inflation is constant at 2% and you earn a 5% return on your retirement savings).
Have a look at this table below to see how much you should be saving at different ages to be sure you have saved enough when you retire:
Remember, this is just a guide to help keep yourself on track. So, while you may not have this saved up yet, you should try your best to save so you can get there.
This is where taking advantage of EPF’s voluntary contribution option can help you reach your targeted savings amount.