The Employees Provident Fund Essay Sample

About the Employees Provident Fund ( EPF )
The Employees Provident Fund ( EPF ) is Malaysia’s prime retirement nest eggs fund. supplying basic fiscal security for retirement. The Fund is committed to continuing and turning the nest eggs of its members in conformity with best patterns in investing and corporate administration. It will ever be guided by prudence in its investing determinations. As a customer-focused administration. the EPF delivers efficient and dependable services for the convenience of its members and registered employers. The EPF continues to play a catalytic function in the nation’s economic growing. consistent with its place as a prima nest eggs establishment in Malaysia. The EPF. the 6th largest provident fund in the universe. was responsible for the direction of RM554. 1 billion worth of financess as of the 2nd one-fourth of this twelvemonth 2013. In the last five old ages since 2008. the fund has given an mean dividend of 6. 11 per cent. Employees Provident Fund ( EPF ) will offer retirement and fiscal advice Harmonizing to Chairman Tan Sri Samsudin Osman. the Employees Provident Fund ( EPF ) will offer retirement and fiscal advice as a value-added service to its members next twelvemonth at EPF subdivisions in the Klang Valley.

This new service is aimed at assisting members in their retirement planning and supply instruction in fundss. adding the enterprise is hoped to assist EPF subscribers prepare for their retirement. The fund’s surveies have shown that people tend to waste money in a short period. which could be debatable if EPF was their lone beginning of income. ( TheStar. 2013 ) The Malayan Trade Union Congress has reportedly come out in support of the EPF’s new policy and urged employers to implement it across the board. EPF announced that employees aged between 55 and 60 old ages will lend 11 % to their histories effectual this month while employers will lend 12 % .

The new Basic Savings on 1 January 2014

Introduced in February 2008. ‘Basic Savings’ refers to the sum of nest eggs at the age of 55 old ages that are considered sufficient to back up member’s basic retirement demands like nutrient and vesture.

The EPF chief concern is the adequateness of nest eggs for members’ retirement. Malaysians today are blessed with a length of service that now extends to 75. As such. sustainability in nest eggs is really of import without holding to be a fiscal load to their loved 1s.

For that ground. the EPF has besides revised the Basic Savings to a higher rate. of which now. members should hold at least RM196. 800 of EPF nest eggs by the age of 55 ( or equivalent to RM820 per month for a period of 20 old ages. from age 55 to 75 ) . The new Basic Savings rates which will take consequence from 1 January 2014. have been benchmarked against the minimal pension for public sector employees which is presently at RM820 per month. so that member’s monthly retirement income does non fall below the poorness degree. The purpose is to guarantee its members have adequate nest eggs to finance their retirement demands. Following the alteration of the rates. members would necessitate to hold higher nest eggs in their EPF history to run into the sum determined harmonizing to their age in order to do them eligible to take part in the EPF-Members Investment Scheme.

This is to safeguard and guarantee that members have sufficient nest eggs in the EPF to finance their basic retirement demands in line with the mean life anticipation before they could choose for other investing options. ( Ibrahim. 2013 )

Execution of the minimal retirement age of 60
More than six million Employees Provident Fund ( EPF ) active members stand to profit from the EPF part rates which stay unchanged until age 60. an enterprise that will hike members’ retirement nest eggs. Effective from August 2013 rewards. employees aged up to 60 will have EPF parts at 12 per cent from their employers ( or 13 per cent for employees gaining a monthly pay of RM5. 000 and below ) while employees themselves will go on to lend the same rate at 11 per cent. Previously. those above 55 were merely required to lend half of the regular statutory rate. same as their employers. While the alterations in the retirement age and the part rates take topographic point. the bing Age 55 Withdrawal and Age 50 Withdrawal remain unchanged. Harmonizing to EPF Deputy Chief Executive Officer for Operations. Dato’ Ibrahim Taib. the execution of full part rates until age 60 would assist members roll up their nest eggs in the long term for their retirement. Furthermore. with the minimal retirement age implemented late. it increases the opportunities for employees procuring a comfy retirement when they have longer clip to heighten their retirement nest eggs and shorter clip to pass for retirement.

Decision
Diversify the beginning of your retirement income and make non depend on your EPF nest eggs entirely to back up your retirement.

1. Get down salvaging early
The earlier you start to salvage. the more money you will roll up when you retire. Cultivate the wont of salvaging for your retirement into your manner of life.

2. Plan for your Future
Identify your retirement demands and the beginning of income to finance your retirement life. Plan your fiscal duties and disbursals and salvage portion of your income for these contingencies.
3. Health Care or Insurance

Perform regular medical scrutiny and take a healthy life. Being healthy allows you to work longer and hence increase your retirement nest eggs. Furthermore. you can salvage on your medical measures and can utilize your retirement nest eggs for other disbursals.

4. Invest sagely
A wise investor is an educated investor. Learn to recognize investing hazards and continuously measure your investings. Do non put in ‘Get Rich Quick Schemes’ and unregistered investing companies.

Mention
APPELL. D. ( 2013. 8 23 ) . Pension and investing. Malaysia’s EPF announces stairss to hike retirement nest eggs. Retrieved from hypertext transfer protocol: //www. pionline. com/ epf to offer retirement. fiscal advice to members next twelvemonth. ( 2013. 9 17 ) . . Retrieved from hypertext transfer protocol: //www. bernama. com. my/ Epf part rate unchanged up to 60-years-old. ( 2103. 8 5 ) . KiniBiz. Retrieved from hypertext transfer protocol: //www. kinibiz. com/ Lee. L. ( 2013. 9 10 ) . Malaysians can’t depend on epf for retirement. says pension fund expert. The Malayan Insider. Retrieved from hypertext transfer protocol: //www. themalaysianinsider. com/ About epf. ( n. d. ) . Retrieved from hypertext transfer protocol: //www. kwsp. gov. my/portal/ms/web/kwsp/home Epf will offer retirement and fiscal advice next twelvemonth ( 2014 ) ( 2013. 9 13 ) . Retrieved from hypertext transfer protocol: //www. theedgemalaysia. com/