The average worker in Malaysia would have an estimated RM120,000 in his savings with the Employee Provident Fund by the time he reaches 55. According to the deputy finance minister, Ahmad Husni Hanadzlah, this would give him a monthly return of RM500 assuming he does not withdraw the principal amount.
“This is if the worker does not withdraw the principal. If the worker wants a higher return, he must have more than RM120,000 in savings. However, the RM120,000 is only sufficient to meet basic expenses,” he told the Senate.
He said the EPF had strategies to ensure workers were prudent with their savings and that they invested their money in proper schemes. For instance, they are allowed to withdraw from their EPF to buy houses or buy a second house if the loan on their first property has been settled.