B40, M40 and T20? What is the salary to be within T5 in Malaysia?

B40, M40 and T20? What is the salary to be within T5 in Malaysia?

Stats from Department of Statistics Malaysia shows T5 is as follows:

Without adding the changes in 2025 and relying on just 2024, median income for a household of a T5 category starts from RM20,738 per month (image below) . In other words, this household has a yearly income of RM248,856. If this household is contributing to EPF and has an employer also contributing to the EPF for employer portion, then this household’s EPF will have accumulated the following per year.

RM20,738 x 11 percent for employee = RM2,281

RM20,738 x 13 percent for employer = RM2,696

Comfortable life after retirement unless…

Every month, this household has around RM4,977 or per year, it’s RM30,068. Without adding EPF dividends, if this household continue working for the next 20 years, just the EPF savings alone, the household would have a retirement pile of RM30,068 x 20 years = RM601,360. With EPF dividends, we can conservatively say that this household would have over RM1 million when the working people in this household retires at 60. Unless this T5 household spends indiscriminately, their future does look comfortable yeah. Your thoughts?

What about T10, surely this group is also comfortable?

Yes, I also believe T10 households are already considered comfortable. Truth is, if this household is living in a decently priced home of say RM500,000 and owns a decent Segment A or Segment B national branded cars, they will be able to save a good portion of their income every month. a T10 household has a median income of RM16,202 per month or RM194,424 per year. This meant that in 5 years, this household would have earned over RM1 million in income. Depending on how much went to expenses, this household will either have a comfortable life or a struggling one. Earning is much harder than spending it, obviously.

As long as this household work for 20 years, their total EPF retirement savings should also exceed RM1 million. In other words, once we work hard enough, earn enough to reach this stage, as long as we do not do foolish things like buying a nice car to reward ourselves, we will be just fine. What are your thoughts. Do you think a T10 household is able to achieve a comfortable life already?

Happy working towards or even maintaining your current T10 or T5 and move them higher when you also include in clever and smart investments into the salary / income mix as well. Cheers.

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