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EPF news: At minimum, one should have RM240,000 when their income stops

person putting coin in a piggy bank

EPF news: At minimum, one should have RM240,000 when their income stops

How soon could we save RM240,000 on our own?

Regardless of how much we earn, if we save just RM500 per month, we will reach RM240,000 in 40 years. Okay, with dividends, it will be earlier than 40 years, probably 30 years? The point is, we better save some money because one day we will have no more incomes. The minimum savings one should have is RM240,000.

Why is the suggested number RM240,000?

This assumes the retirement to be 55. In other words, income stops. Meanwhile life expectancy for a Malaysian is 73.4 years old. Source: In other words, the RM240,000 should cover the person for around 20 years. That’s 20 years x 12 months equal to 240 months. RM240,000 divided by 240 months is equal to RM1,000 per month. That’s why Employees Provided Fund (EPF) says that the Basic Savings achievement when a member turns 55 should be RM240,000.

Here are the details in Only 18 percent of total EPF members have met the basic savings of by age as of May 2023. This will enable them to achieve the RM240,000 Basic Savings by the age of 55. Thus enabling the member to have RM1,000 per month over a 20-year retirement age period.

With only 56 per cent of Malaysia’s 16.7 million labour force having some form of formal social protection coverage, the EPF has deployed mobile units to reach out to seven million people in the informal sector and self-employed, who could become an EPF member. Read the full article here: Here are the details in

How to live with just RM1,000 per month?

This is a very good question. It’s hard to answer because everyone’s lifestyle and expectations of a life is different. If you ask me, RM1,000 divided by 30 days is RM30 per day. Assuming this person has medical insurance protection and also a fully paid home or somehow have access to free place to stay, then I think this RM30 for 3 meals is still sufficient lah. However, we cannot say we want a lot of options, nice places to have meals etc.

Breakfast – 2 roti canais, one teh o panas and one boiled egg (DIY at home). This is just RM5.

Lunch – One plate of rice with one vegedish and one portion of chicken at some rice stalls would still be around RM8 or less today.

Dinner – Pack one Singapore fried bee hoon and eat at home while watching TV and sipping a 3 in 1 White Coffee. RM8. This is just RM21 per day. 🙂

It can be even lower if one is buying a loaf of bread, spread some margarine and sugar for some of the meals too. Hey, its delicious yeah. Just cannot eat every day for many weeks.

Savings would really be just the minimum

Investment will be key to the above assumptions. Without a place to stay, everything above is no longer applicable. Now think how much would it cost to rent just a room? Suddenly everyone realizes that poverty is associated with a lack of property in many countries including advanced ones. Without owning a roof, one would have to pay rental forever. Happy understanding.

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Charles Tan The Founder The Writer Kopiandproperty
Charles Tan

Charles is Founder of He writes from his investment experience for the the past 20 years in investments including property, stock, unit trust and more as well as readings and conversations with many property gurus in the industry. is an independent property blog which is not affiliated to any media company, property developer or even real estate agencies.


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