Epf More Than Three Million Contributors Yet To Rebuild Their Savings After Special Withdrawals

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About 3.1 million contributors who made withdrawals via the four withdrawal schemes of the Employees’ Provident Fund (EPF) have not been able to rebuild their respective savings, revealed EPF.
(MMO) – EPF said that the amount is equivalent to 39 per cent of the total of 8.1 million EPF members who make withdrawals with their current savings rate is only around RM890, Utusan Malaysia reported.
Of the 8.1 million members making withdrawals, EPF said that 0.3 million (four per cent) have reached the age of 55 and above, which qualifies them to make full withdrawals of all their savings.
A total of 4.6 million contributors or 59 per cent have started to rebuild their savings with net savings growth amounting to RM26.1 billion within eight months of making withdrawals.
However, EPF said that the percentage of its members who will reach a basic savings amount of RM240,000 at the age of 55 dropped drastically, from 36 per cent in 2020 to only 29 per cent at the end of 2022.
Universiti Keusahawanan Koperasi Malaysia (UKKM) senior lecturer Prof. Associate Dr Abu Sofian Yaacob said that the figure shows that almost five million EPF members are able to rebuild their savings but many are still struggling to make contributions after a year of making withdrawals.
Abu Sofian said this situation makes the insistence on special withdrawal for the fifth time impractical, on the contrary, he added that it will only worsen the situation especially for EPF members who are significantly short of money in their respective savings.
“Those who previously took out savings could only make monthly contributions at a small rate. They also may not have a regular income, job and were laid off or just gotten into a new job.
“For them, the effort to rebuild the savings will be quite difficult and will take a long time,” he was quoted as saying.
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