Saving and Retirement Plan

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Wy !s !t !mportant "o Diversify Your Source
#f Retirement !ncome?
Wat !s $asic Savings?
%em&er's !nvestment Sceme
(%alaysia Retirement Savings Sceme
)SP(%* 3/17
Are Your RetirementSavings Sufficient? Did you 2no3?
A stu! conucte "! t#e $or% &ea%t# Organisation '$&O( in )**+
#as foun t#at Ma%a!sians #ave a #ea%t#! %ife e,-ectanc! of u- to
.. !ears/
$it# an average %ife e,-ectanc! of +0 !ears1 t#e Ma%a!sian
-o-u%ation is e,-ecte to e,-erience #ea%t# -ro"%ems in t#e %ast 2
to 3* !ears of t#eir %ives/
Are !our savings sufficient for !our retirement?
$#et#er !our retirement savings is sufficient or not e-ens on
severa% factors45
cost of living6 and
• 7o3 you plan your finances &efore retirement and o3 tey are spent after retirement8
&o6 muc# o !ou nee for !our retirement?
• !t all depends on your needs and re9uirements5 ealt condition
and lifestyle8
• !f you 3is to spend R%-/. a mont for a period of /. years )00
years : ;0 years*5 you need to ave a total of R%(<,5-.. in your
savings at te age of 008
• !f you 3is to spend R%-/. a mont for a period of (0 years
)assuming tat you retire at age ,.*5 you need to ave R%(+;5,..
in your savings at te age of ,.8
Effective (st
finance your
&asic retirement 4/17
$#at are EPF7s initiatives to #e%- increase mem"ers7 savings?
Since )**+1 t#e EPF #as introuce t#e fo%%o6ing im-rovements to
t#e EPF sc#eme in orer to increase t#eir mem"ers7 retirement
savings an iscourage mem"ers from e-%eting a%% of t#eir
savings in a s#ort -erio of time45

!ncreasing te percentage of retirement savings in Account ( from ,. to ;.6
• !ntroduced te Age 00 Years Witdra3al5 a fle>i&le 3itdra3al
facility tat gives mem&ers te option to 3itdra3 teir savings
lump sum or montly5 partially or a com&ination of te options6
• E>tended te contri&ution )mandatory* age from 00 to ;0 for
mem&ers 3o are still in employment8
&o6 can !ou increase !our retirement savings?
T#e fo%%o6ing ti-s can #e%- !ou increase !our retirement savings45
• 8iversif!ing t#e source of !our retirement income
!t is important to ave more tan one source of income so tat you
3ill not depend on your EPF savings alone to support you troug
your retirement years6

Start saving ear%!"e earlier you start saving5 te more money you accumulate 3en
you retire8 Cultivate te a&it of saving for your retirement as your
3ay of life6
• P%an for !our %ong5term nees
!dentify te main re9uirements for your retirement5 te amount and
source of income needed to support your [email protected] needs8 Plan
your financial re9uirements and e>penses and save part of your
income for any eventualities6
• &ea%t#care
Perform regular medical e>aminations and lead a ealty lifestyle8
$eing ealty 3ill save you from incurring ig medical costs
3ic tend to consume most of your retirement savings as 3ell as
allo3s you to 3or2 longer so you can increase your savings6 and
• Invest 6ise%!
 A 3ise investor is a 2no3ledgea&le investor8 4earn to recognise
investment ris2s and al3ays evaluate your investment activities8 Do
not invest in Bet Ric uic2 Scemes' or 3it any oter
unregistered investment companies8
To ensure !our
Consider 5/17
 You s#ou% not e-en on !our EPF savings as t#e on%! source ofincome for !our retirement/
$#at is t#e Im-ortance of 8iversif!ing t#e Source of Your
Retirement Income?
Your EPF savings alone may not &e enoug to support your golden
years8 !nsufficient retirement savings can &e due to several reasons5
among tem longer lifespan5 lo3 salary and early retirement8 %ore
often tan not5 te money 3ill &e e>austed in a sort period of time8
Since te esta&lisment of te EPF on te (st of #cto&er (<0(5 te full
3itdra3al age as remained at age 005 3ile te life e>pectancy of
%alaysians as increased to age ;08 "is means tat your EPF savings
needs to last for /. years after you retire8
3/ T#e )*39 EPF statistics for mem"ers age 09 revea%e t#at45
• ,- of mem&ers ave savings R%0.5... and &elo36
• 01 of mem&ers ave savings R%/.5... and &elo36 and
• #nly 1/ of mem&ers still 3or2 at age 0+8
"is amount of savings is not sufficient to support you for /. years
after your retirement8 6/17
• You 3ill not fully rely on your EPF savings alone6
• You can receive a continuous flo3 of income6 and
• You can avoid depleting your retirement income 3itin a
sort period of time8
$#at are t#e sources of retirement income avai%a"%e?
 You can iversif! !our retirement income t#roug# t#ese sources45
• EPF Savings
 All private sector 3or2ers are mandated to contri&ute a certain
percentage of teir salary to teir EPF account8 "is is in addition
to te contri&ution made &y teir employer on teir &ealf8
• :onventiona% Savings an Protection
#ter tan saving your money in &an2s or "a&ung 7ai5 AS$ or  ASW5 you are also encouraged to ave oter forms of financial
protection suc as insurance policies tat covers ealt5
education5 accidents5 permanent disa&ility or deat8
• Vo%untar! :ontri"ution
 Apart from te EPF mandatory contri&ution5 you can also
contri&ute a certain amount of your income into voluntary
scemes suc as te Private Retirement Sceme )PRS* or te
(%alaysia Retirement Sceme )SP(%*8
• Senior :iti;en Fun<Sc#eme
"is sceme5 or S2im $antuan #rang "uaG5 is introduced &y te
Department of Social Welfare for senior citiHens 3it a ouseold
income of less tan R%(50.. per mont and 3o meet te
re9uired terms8 #ter forms of assistance can also &e o&tained
from $aitulmal5 4em&aga Ia2at5 etc8
• Informa% Su--ort
#ter tan see2ing support and assistance from families andfriends5 tere are oter forms of informal support suc as free
medical services from pu&lic clinics and ospitals5 income from
rental of real estates5 dividends from investments or unit trust5
interests from fi>ed deposits5 or financial assistance under te
Program Pem&angunan Ra2yat "ermis2in )PPR"*G8
$#at are ot#er sources of income avai%a"%e for retirees?
Wor2 [email protected] or operate a small &usiness from ome or turn your
o&&y into a source of income8 You can also &uy annuities from insurance companies5 3ic 3ill provide a fi>ed montly income for
te rest of your life8
!t's &est to &e
various sources
retirement8 7/17
$#at Are T#e =enefits
Of EPF Savings? EPF savings are for retirement/ It is ivie into t6o ')( accounts 5 Account 3
an Account ) of 6#ic#45
Account 3 @ comprises ;. per cent of mem&ers' savings 3ic can only &e 3itdra3n
3en reacing retirement age6 and
Account ) @ comprises 1. per cent of mem&ers' savings5 3ere mem&ers can ma2e
[email protected] retirement 3itdra3als aimed at enancing mem&ers' retirement [email protected]
$#en can 6it#ra6a% < transfer of savings in Account 3 > Account ) "e mae?
$#en can mem"ers 6it#ra6 t#e savings in Account 3?"e savings can only &e 3itdra3n 3en a mem&er reaces te age of 008
:an mem"ers invest using t#eir savings in Account 3?
Part of te savings in Account ( can &e used to invest in unit trusts troug [email protected]
Fund %anagement !nstitutions8
$#en can mem"ers 6it#ra6 t#eir savings in Account )?
"e savings in Account / can &e 3itdra3n for te follo3ing [email protected]
• &ousing $it#ra6a% "is sceme allo3s mem&ers to o3n a comforta&le ome upon retirement6
• Eucation $it#ra6a%
"is sceme allo3s mem&ers to finance te cost of iger education at diploma level
and a&ove8 A good education can elp improve mem&ers' K mem&ers' cildren's
standards of living as 3ell as increase teir retirement savings6
• Meica% $it#ra6a%
"is sceme allo3s mem&ers to pay for medical e>penses incurred for te treatmentof critical illnesses andKor to &uy medical aid e9uipment as approved &y te EPF
$oard for yourself or your allo3ed family mem&ers6
• Age 0* Years $it#ra6a%
"is sceme allo3s mem&ers to prepare and plan &efore reacing retirement6
8/19/2019 Saving and Retirement Plan 8/17
• $it#ra6a% Of Savings Of More T#an RM3 Mi%%ion
%em&ers 3it savings of more tan R% ( million can
3itdra3 teir savings in e>cess of te R% ( million5 su&ect
to a minimum amount of R%0.5 ... )3ic means tat
mem&ers must ave savings of at least R%(8.0 million*8 "is
3itdra3al can &e made once every 1 monts6 and
• &a $it#ra6a%
7elps mem&ers to finance te e>penses of performing 7a8 "is 3itdra3al only covers te &asic e>penses and not te
entire cost8
$#en can fu%% 6it#ra6a% of t#e EPF savings "e mae?
Fu%% 6it#ra6a% from Account 3 an Account ) can "e mae if t#e
fo%%o6ing criteria are met45

Lpon reacing te age of 006 • Lpon emigration to anoter country6 • "e mem&ers ave &een confirmed incapacitated5 pysically
or mentally5 aving acieved te level of %a>imum %edical
Rea&ilitation )%%!* to 3or26
• Lpon deat 3it payment made to te nominee K ne>t of 2in K
&eneficiaries K administrators6 and •  A civil servant under te pension sceme or a civil servant
3o as opted for early retirement are entitled to receive all
of te savings including dividends from te employee's
contri&ution5 3ere&y te employer's )Bovernment* contri&ution is returned to te Retirement Fund !ncorporated
$#at ot#er "enefits o I get as an EPF mem"er?
A-art from 8eat# an Inca-acitation $it#ra6a%1 "eneficiaries or
mem"ers t#emse%ves are entit%e to receive an aitiona% -a!ment
'not from mem"er7s saving( from EPF as a gesture of com-assion/
T#e "enefit e%igi"i%ities are as fo%%o6s45
• Deat $enefit of R%/50..5 provided tat 3itdra3al is made
3itin si> ),* monts from te date of passing5 and te
deceased mem&er as not reac te age of 006 and  
• Disa&ility $enefit of R%05...5 provided tat te disa&ility
3itdra3al is done 3itin one )(* year from te date te
mem&er loses is or er employment due to is or er
disa&ility &efore reacing te age of 008
Note 4
and not from mem&ers' savings8
 Any [email protected]
3itdra3als 9/17
$#at Is =asic
Savings?Introuce in Fe"ruar! )**21 =asic Savings is t#e minimum
amount of savings mem"ers nee in orer to su--ort t#eir "asic
retirement nees 6#en t#e! reac# age 00/
T#e =asic Savings amount is set accoring to age1 6#ic#
u%timate%! a%%o6s mem"ers to #ave at %east [email protected]** 'RM2)* a
mont# for t#e -erio of )* !ears( in t#eir EPF account "! age 00/
T#e =asic Savings is a%so use to etermine t#e amount fromAccount 3 -ermitte for mem"ers to invest uner t#e Mem"er7s
Investment Sc#eme 'MIS(/
T#e minimum amount for =asic Savings is "ase on t#e fo%%o6ing
 A pay i2e of 1 yearly for mem&ers6
"e EPF yearly dividend rate is + a year6 and
"e EPF statutory contri&ution rate is /1 of te montly
3age8 uantum for =asic Savings "ase on
age 45
 Age $asic Savings )R%*
 Age $asic Savings )R%*
 Age $asic Savings )R%*
(- (5... 1( 1.5... ++ <05...
/. +5... 11 1;5... +, (.<5...
/( 05... 1+ +(5... +; ((;5...
// ;5... 10 +,5... +- (/05...
/0 (15... 1- 0<5... 0( (015...
/, (05... 1< ,+5... 0/ (,15...
/; (-5... +. ,<5... 01 (;+5...
/- /(5... +( ;,5... 0+ (-05...
/< /+5... +/ -(5... 00 (<,5-..
1. /;5... +1 --5... 10/17
$i%% =asic Savings "e su"ecte to revision?
$asic Savings is revised &ased on minimum pension rate of pu&lic
sectors5 or every tree )1* years5 3icever comes first8
Note 4
amount of
savings needed 11/17
$#at is Mem"er7s Investment Sc#eme 'MIS(?
T#is sc#eme a%%o6s mem"ers to transfer a -ortion of t#eir savings
from Account 3 for t#e -ur-ose of investment in orer to increase
t#eir retirement savings/
Mem"ers ma! invest not more t#an )*D of t#eir savings in e,cess
of t#e =asic Savings amount from Account 3 t#roug# t#e
a--ointe Fun Management Institutions 'FMIs( a--rove "! t#e
Ministr! of Finance/ T#is is to %imit t#e e,-osure of investment ris
on t#eir retirement savings/
$#o is e%igi"%e to -artici-ate in t#e Mem"er7s Investment
Sc#eme 'MIS(?
(8 %alaysian CitiHen8
• !s an EPF mem&er &efore (st August (<<-6
• #&tained a Permanent Resident status )PR*8
$#at is t#e amount t#at mem"ers must #ave to "e e%igi"%e to invest in t#e Fun Management Institutions 'FMIs(?
%em&ers may invest from teir savings under te follo3ing [email protected]
• /. from te mem&ers' savings in e>cess of te $asic
Savings amount in Account (6
• FormulaJ )Account ( : $asic Savings* > /.6
• "e minimum amount for %em&ers !nvestment Sceme )%!S*
is R%(5...6
• !nvestments can &e made once every 1 monts6 • !nvestments can &e made to one Fund %anagement !nstitution
)F%!* at a time6 • Su&se9uent investments can &e made 3it te same or
oter approved Fund %anagement !nstitutions )F%!s*8
Mem"er7s 12/17
Moe of a--%ication ?
•  Applications must &e su&mitted troug any of te appointed Fund %anagement !nstitutions )F%!s* alongside 3it MWSP <N
)A74* form and a copy of %yMad8
• "e F%!s 3ill transmit te application to te EPF for processing8
A--rove Fun Management Institutions
 All investments must &e made troug te Fund %anagement
!nstitutions )F%!s* approved &y te %inistry of Finance8 "e updatedlist of Fund %anagement !nstitutions )F%!s* can &e o&tained at any
EPF &rances or via EPF 3e&site at 666/6s-/gov/m!
Returning T#e Investment To EPF
• %em&ers are re9uired to return all amounts to te EPF )including
te gains* once te investment units ave &een sold &efore
reacing te age of 008 "e money 3ill ten &e credited into te
mem&ers' Account (8
• %em&ers are not allo3ed to 3itdra3 any amount )no lea2ages'*
from te money invested troug te Fund %anagement
!nstitutions )F%!s*8
"otal Savings in Account ( R%105...
$asic Savings at 1. years old )Refer to $asic Savings Scedule*
Savings in Account ( tat e>ceeds $asic Savings R%-5...
 Amount eligi&le for investment under te %em&er's !nvestment Sceme )%!S* isJ
/. > R%-5... R%(5,.. )%inimum investment R%(5...*
R%(5,.. 13/17
(+ Annua% EPF 8ivien On Amount Investe
%em&ers 3ill not o&tain any dividends declared &y te EPF on te
amount invested as it is not invested &y te EPF8
Re%ease of :ontro% On T#e Investment
"e EPF 3ill release its control on te invested amount &y te Fund %anagement !nstitutions )F%!s* 3en a mem&er reaces age 00 or as
made full 3itdra3al under 4eaving te Country5 !ncapacitation5
Pensiona&le Employees and Deat Witdra3als8
Claims or resale of te invested units 3ill &e managed &y te mem&erK
ne>[email protected]@2in directly 3it te Fund %anagement !nstitutions )F%!s*8
"e amount transferred to te Fund %anagement !nstitutions )F%!s* is not su&ect to nomination made &y a mem&er8 "e EPF 3ill discarge
control over te invested amount upon te demise of a mem&er8
Payment to te ne>[email protected]@2in 3ill &e made &y te Fund %anagement
!nstitutions )F%!s* in accordance 3it relevant legislations8
for teir 14/17
Se%f5em-%o!e iniviua%s1 #ouse6ives an t#ose 6it#out a fi,e
income o not #ave a forma% retirement -rotection sc#eme %ie t#e
ones eno!e "! t#e -rivate sector 6orers 'EPF( an -u"%ic
sector em-%o!ees '-ension sc#eme(/
$#at oes SP3M aims to o?
• Provides an avenue for [email protected] individuals or tose 3itout
a fi>ed income to save for teir retirement8
• "is sceme is designed to encourage tese individuals to
contri&ute voluntarily &ased on teir afforda&ility for teir
• Demonstrate te Bovernment's concern for tis group of
individuals &y giving tem incentives to save for teir retirement8
$#o is e%igi"%e to oin SP3M?
[email protected] individuals or tose 3itout a fi>ed income suc as
ta>i drivers5 a32ers5 farmers5 fisermen5 freelance consultants
• 7ouse3ives8
$#at is t#e contri"ution rate for SP3M?
"e contri&ution rate for SP(% is &ased on one's afforda&ility and
can &e as little as R%0. 3it a ma>imum amount of R%,.5... a
$#at are t#e "enefits of -artici-ating in SP3M?
•  Annual dividend tat is su&ect to a minimum dividend rate of /808
• %em&ers are eligi&le to receive Deat $enefit )R%/50..* and an
!ncapacitation $enefit )R%05...*5 su&ect to terms and conditions8
3Ma%a!sia 15/17
medical purposes and upon reacing age 0. years6 and
• Full or partial 3itdra3al can &e made upon reacing age
$#at are t#e Government incentives for SP3M mem"ers?
• "a> e>emption of up to R%,5... per year )3it life insurance* for
[email protected]yed individuals8
• Bovernment contri&ution of (. per year su&ect to a ma>imum
amount of R%(/. per year8 "is contri&ution is only for te period
of four )+* years &eginning from /.(+ : /.(;8 "is contri&ution is
limited to mem&ers &elo3 age 00 and 3ill &e credited into
 Account (8
&o6 can I -artici-ate in t#e SP3M sc#eme?
!ndividuals must first &ecome an EPF mem&er &y su&mitting a
completed EPF Form 1 3it teir %yMad8 After approval5 mem&ers
can ten re9uest to participate in SP(% &y completing te SP(%
Selection Form i8e8 te EPF (,B)(%* Form8
&o6 to mae SP3M -a!ment?
• Lsing te (%alaysia Retirement Savings Sceme Payment Form :
MWSP ,A)/* tat can &e o&tained at te EPF counter or EPF 3e&site8
• "e MWSP ,A)/* Form is to &e su&mitted togeter 3it te casK
ce9ue troug te follo3ing [email protected]
• EPF counter or mail6
•  Appointed &an2 agents @ R7$ $an25 %ay&an2 $d5 Pu&lic
$an2 $d and $SN6 and •  Appointed online internet &an2ing : %ay&an2 $d and Pu&lic
$an2 $d8
Are t#ere an! ot#er vo%untar! contri"utions avai%a"%e?
• !ndividuals 3o are [email protected] or tose 3itout a fi>ed income
can still contri&ute voluntarily to te EPF troug Self Contri&ution8
• %em&ers can opt to increase or [email protected] te savings in Account (
for teir spouse or for teir parents8
You ave a coice
to save for your
decision for your
mont goes a
long 3ay to3ards
a appy and
comforta&le life 16/17 17/17
!ndividual Assessment of Financial Status  You can eva%uate !our financia% status "! using t#e
Mont#%! Income1 Savings an E,-enses Ta"%e
Tota% E,-enses '8( s#ou% "e %ess t#an Tota% Income '=( Tota% Savings ':( '8 H = :(
MONT&BY IN:OME 'RM( MONT&BY EPENSES 'RM( Net !ncome )A* 7ousing 4oan
Spouse !ncome 7ire Purcase 4oan
7ouse Rent !ncome Oeicle 4oan
$usiness !ncome #ter 4oans
Dividend K $onus Pai =roacasting
E>amplesJ Astro5 !nternet5%o&ile Pone etc8 #ter !ncome Maintenance
E>amplesJ @ 7ouse %aintenance Fees5 Property Assessment "a>
Oeicle %aintenance
EPF Contri&ution )(( > Net !ncome )A**
Net !ncome )A**8 E>[email protected]
!nsurance5 Annuity5 Stoc25 Lnit "rust5 AS$5 Savings for 7a etc8
Education E>penses
%edical E>penses
#ter Fi>ed E>penses
"e recommended savings is 1. of your salary )(( EPF mem&er's contri&ution5 (/
employer's contri&utions and ; of savings from oter forms of investment*8
EPF now provides a Retirement Advisory Service (RAS), which aims to assist members to