In a recent news by New Straits Times, a study by Khazanah Research Institute stated that an estimated 82% of Malaysians are not expected to have enough retirement savings.
Employees Provident Fund (EPF) raised the minimum savings target by age 55 from RM197,000 to RM228,000. Sadly, only 18% of members have this much. Without proper financial planning – this nightmare is possible.
Majority of Malaysian retirees are facing this issue. Even those who are working full-time and committed to EPF monthly don’t have enough saving for retirement, what about those who are self-employed?
EPF savings are not only reserved for people who are working full-time
Most Malaysians think that EPF savings are exclusively for people who are working full-time. The truth is, anyone can be a member and enjoy the benefits as long as they meet all the requirements.
Meaning, if you are self-employed, a freelancer, your own boss or a housewife, you can register for Voluntary Contribution with Retirement Incentive (i-Saraan) – the best way to save for your future.
Receive an additional 15% government contribution when you become an EPF member
As a member under i-Saraan, you’ll receive a 15% government contribution on top of your own contributions. This amount is capped at a maximum of RM250 per year for members aged below 55 years old. The Government incentive will be given from the year 2018 until 2022.
Who can apply for i-Saraan?
- Malaysian citizen
- Below 55 year of age
- Registered EPF member
- Self-employed individuals
Voluntary Contribution with Retirement Incentive (i-Saraan) is available for self-employed individuals. Examples of jobs are freelancers, musicians, artists, hawkers, vendors, photographers, and even YouTubers. As long as you’re earning an income, you are eligible to sign up as an EPF member. This offering is also available for housewives.
There are so many benefits besides 15% government contribution
You are eligible for income tax exemption up to RM4,000. An additional benefit is, you are entitled to receive death benefit amount RM2,500. Most importantly, as an EPF member, you will earn annual EPF dividend on your retirement savings. You won’t feel burden if you sing up under this scheme as it doesn’t require you to earn a regular income.
It’s is not mandatory to make contributions every month
i-Saraan is flexible that allows you to contribute according to your own time and within your own financial ability. Nonetheless, you still be able to make withdrawals. There is no minimum limit and you can save RM60,000 yearly maximum.
Save now for a decent life after retirement
So, is your retirement fund insufficient, it’s time for you to sign up and be an EPF member to enjoy all the benefits. For more info regarding i-Saraan you may click here.