By Aidila Razak
Employees Provident Fund (EPF) depositors who have more than RM120,000 of basic savings in the Account 1 may be able to withdraw more of their funds to place in approved investments.
This was revealed in the Economic Transformation Programme 2012 annual report launched by Prime Minister Najib Abdul Razak on Tuesday night.
According to the ETP report, prepared by the Performance and Management Delivery Unit (Pemandu), this is one of the steps taken to stimulate the retail wealth management market.
“The government is considering allowing EPF members with more than the maximum RM120,000 basic savings amount in Account 1, regardless of age, to invest up to 50 percent of the excess in unit trusts and exchange traded funds,” it read.
The EPF’s Members Investment Scheme presently allows members to withdraw on a quarterly basis not more than 20 percent of the total savings in Account 1 in excess of their respective basic savings.
The basic savings amount is determined according to age levels, in order to ensure members save at least RM120,000 by the time they are 55 years of age.
According to the EPF, as at 31 Mar 2012, more than 750,000 members have participated in the scheme involving more than RM21 billion of net amount invested with approved financial management institutions.
The government estimates that an average worker would have at least RM120,000 after 30 years of employment, allowing him or her to have RM500 a month for 20 years of retirement.
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