IT’S a dream many of us share—reaching RM1 million in savings, which could secure a stress-free and comfortable future.
But what if you could achieve that with a modest income and no need for a lottery win?
In a Youtube video by Astro Awani, Balqais Yusoff, Head of Policy and Strategy at Employees Provident Fund (EPF) has revealed that even Malaysians earning a basic salary of RM1,700 can accumulate RM1 million in their account by the time they reach retirement age.
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According to EPF simulations, consistent contributions and financial discipline are key to reaching this goal.
She highlighted that a steady savings habit, along with avoiding early withdrawals, can help workers achieve a financially secure retirement, regardless of their salary.
For those starting their careers with a higher salary, like RM3,000, the goal becomes even more attainable.
And if you’re disciplined about your savings, the RM1 million milestone can be reached without factoring in any additional investments or bonuses.
EPF provides useful benchmarks as early indicators to help workers track their progress towards this financial goal:
RM57,000 in Account 1 by age 35
RM76,000 across all EPF accounts by the same age
By age of 55, EPF suggests having at least RM240,000 in Account 1, which could generate a steady income of RM1,100 a month in dividends, assuming an annual dividend rate of 5.50%.
While RM1 million may seem like a distant dream, EPF’s advice underscores an important truth: it’s not about how much you earn, but how consistently you save.
EPF emphasises that by staying consistent with regular contributions, Malaysians can build a reliable financial cushion for their retirement years.
