THE Employees Provident Fund (EPF) has raised the basic retirement savings benchmark to RM390,000, an increase from the previous RM240,000 guidance, reported Business Times.
This was revealed at the launch of the Retirement Income Adequacy (RIA) Framework and Belanjawanku 2024/2025.
The RIA will have a three-tier savings framework to guide members on the savings required for a comfortable retirement.
The framework will be implemented in 2026.
Changes to policies anchored on the RIA framework will take effect gradually in three years, starting in 2026.
The RIA Framework focuses on the concept of both savings and retirement income security.
To remain relevant to rising costs, the RIA savings levels will be reviewed every three years, starting in 2029, using updated data from the Belanjawanku findings.
The Belanjawanku Guide was developed by the EPF and the Social Wellbeing Research Centre which estimates the minimum monthly expenses needed for a decent living standard. Initially focused on the Klang Valley, the guide now covers 11 other major cities in Malaysia. - December 12, 2024
