Charles Santiago proposes government safety net as 6.3mil contributors hold less than RM10,000 in EPF accounts
PETALING JAYA: Former Klang MP Charles Santiago has urged the government to consider a national retirement fund to support Malaysians with little or no Employees Provident Fund (EPF) savings.
Santiago highlighted that millions of Malaysians are struggling to save enough for retirement, with 6.3 million contributors under 55 having less than RM10,000 in their EPF accounts in 2023 – translating to an expected monthly retirement income of just RM42, which is far below a dignified standard of living.
“Low EPF balances and early withdrawals are symptoms of a deeper issue: low wages, job insecurity, and rising living costs.
“Our current system doesn’t just fail the poor; it produces retirement poverty,” Santiago said in a Facebook statement.
He added that while the EPF’s new Retirement Income Adequacy (RIA) framework sets targets of RM390,000 for basic adequacy and RM650,000 for sufficient retirement income, most Malaysians still fall short of even the old benchmarks.
“This isn’t just about whether RM390,000 or RM650,000 is ‘enough’.
“The question is why so many Malaysians will never reach these targets under today’s low-wage economy,” he added.
Santiago warned that insufficient retirement savings could exacerbate healthcare challenges for retirees, forcing those who have depleted their EPF accounts to struggle when medical needs arise, even though healthcare is a public responsibility.
He called on policymakers to start discussing a government-backed safety net to ensure Malaysians can age with dignity, not in poverty.
