Retirement crisis brewing as EPF savings suggest pensioner poverty
(extracted from an article in malaymailonline)
According to recent figures from the Employees Provident Fund (EPF), the approximately 70,000 active 54-year-old contributors have an average savings of just under RM167,000 last year.extracLUMPUR, Oct 5 ― Malaysia may be headed for a retirement crisis as tens of thousands of Malaysians depart the workforce for their golden years with less savings than is needed to keep them out of poverty. - See more at: http://www.themalaymailonline.com/malaysia/article/retirement-crisis-brewing-as-epf-savings-suggest-pensioner-poverty(below article extracted from various sources)
PRIVATE RETIREMENT SCHEME in addition to EPF:
PPA, Private Pension Authority set up by the government, provides the central administration for the PRS, which was introduced in 2012 as a voluntary long-term investment scheme for retirement savings, which is currently eligible for up to
# RM3,000 in annual tax relief, and
# some providers provide free insurance as well
Save RM250 monthly, get Tax Relief RM3,000 annually plus FREE Takaful insurance http://khoobooyeang.blogspot.my/2016/11/save-rm250-monthly-get-tax-relief.html
For illustration:
Monthly Saving RM250.00
Annual Interest Rate 8%
Compounding Interval Monthly
No. of Years 30
Future Value RM375,073.79
Total Deposits RM90,000.00
Interest Earned RM285,073.79
Monthly Saving RM250.00
Annual Interest Rate 8%
Compounding Interval Monthly
No. of Years 30
Future Value RM375,073.79
Total Deposits RM90,000.00
Interest Earned RM285,073.79
PRS YOUTH INCENTIVE
The government also rolled out the PRS Youth Incentive to encourage those between the ages of 20 and 30 (up to before 31st birthdate) to set up accounts by depositing a RM1000 one-off incentive into each account that amasses a minimum of RM1,000 by year 2018. Minimum initial contribution is only RM100.00 (You save RM1,000 government contributes another RM1,000 to your account ... 100% return on investment!!)
PLUS
POTENTIAL HIGHER RETURN ON INVESTMENTS: up to 22.0% p.a. or higher
Email: dakhoos@gmail.com or PM: 0124836281 for details
