In November 2023, Ministry of Finance stated that 6.3 million members under the age of 55, or 48 per cent, having less than RM10,000 in their accounts. And in 2022, Chief strategy officer of the Employees Provident Fund (EPF), Nurhisham Hussein has said that individuals who are retiring in 20 to 30 years will need to have savings of at least RM900,000 to RM1 million.
RM1 million is definitely a lot to achieve but it is not entirely impossible.
One local man, Nur Fadhli Bassar shared on his Facebook page five helpful tips on how his 45-year-old friend had successfully saved RM1 million in his EPF account.
1. He explained that having a stable job and a sufficient income is important. His friend currently works in the IT sector in Kuala Lumpur.
2. As for the second tip, the friend said he contributed to his EPF. Initially he began contributing 11 per cent before progressing to 12 per cent and lastly 13 per cent. Fadhli also noted that employer’s contribution also plays an essential role to his savings.
3. He explained that his friend did not touch his EPF money unless he was in dire need of it.
4. His friend would increase his EPF contribution by earning a higher paycheck through job hopping methods. Fadhli also inserted that his friend had changed jobs eight times.
5. Lastly, for Muslims, Fadhli stresses the importnace of paying your Zakat and donate more as God will reward you for your sincere generosity and kindness.
“Why am I sharing this? To encourage others to continuously save and be more disciplined so that they too can be millionaires.
“EPF gave a 5.4% dividend for 2023 so [my friend] would have received about RM54k. If he is already retired, that means this year he can spend about RM4.5k a month,” explained Fadhli.
He also added that if his friend retires at the age of 60, he would have more than RM2 million in his EPF and ended his post by encouraging everyone to start saving right now.
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