by DayakDaily Team
KUCHING, March 6: There are 1,700 Sarawakians of various ages who have successfully accumulated more than RM1 million in their Employees Provident Fund (EPF) savings, a report by Suara Sarawak highlighted today.
Nationwide, out of the total 850,000 contributors of various age, 130,000 contributors have savings of at least RM1 million either in their conventional or shariah savings.
EPF Sarawak director Aminuddin Abdul Aziz was cited by Suara Sarawak as saying that those who start contributing from a young age have a greater chance of having sufficient savings throughout their retirement years.
“For example, someone who contributes with a salary of RM3,000 per month starting at the age of 25 or 30, with an estimated annual dividend of around five percent, and a three per cent salary increase, can achieve savings of over RM1.3 million by the age of 60.
“This is based on a contribution rate of 13 per cent by the employer and 11 per cent by the employee themselves, with the condition that no withdrawals are made until reaching retirement age,” he said in a special interview with Suara Sarawak in July 2024.
Therefore, all 16.22 million people who are currently contributing to the EPF have the opportunity to become millionaires by retirement age if they save consistently from a young age.
Earlier this month, EPF announced a dividend rate of 6.30 per cent for conventional savings, with a total payout of RM63.05 billion; and 6.30 per cent for shariah savings, with a total payout of RM10.19 billion. This brings the total payout amount for 2024 to RM73.24 billion. – DayakDaily
