Kuala Lumpur:A university researcher has recommended that contributors to the Employees Provident Fund (EPF) in Malaysia should aim to have at least RM100,000 in savings by the age of 55. This amount is deemed necessary to cover living expenses of RM780 per month post-retirement.

According to BERNAMA News Agency,Chai Sen Tyng, a senior research officer at the Malaysian Institute of Ageing Research (MyAgeing) at Universiti Putra Malaysia, proposed that these savings should be pooled and invested until the contributor reaches 60, after which the funds should be distributed monthly. Initial payments would start at RM780, with annual increases of two to three percent to account for inflation and the rising cost of living.

Chai explained that by the time contributors reach the ages of 65 or 70, they could receive more than RM1,000 per month. This approach could potentially provide financial support for 18 to 20 years after retirement, ensuring continuous financial protection.

He also noted the similarities between this proposal and Singapore's CPF LIFE scheme, where citizens can withdraw savings at 55 but must maintain a minimum balance, receiving monthly payments from age 64.

Earlier, Prime Minister Datuk Seri Anwar Ibrahim announced that Malaysia aims to increase the Retirement Income Adequacy level for six out of every 10 EPF members to meet the Basic Savings benchmark of RM390,000 by 2030. Currently, nearly four in 10 members are on track to achieve this benchmark, though many remain at risk of depleting their retirement savings. The government has allocated RM1.26 billion for elderly welfare, benefiting 180,000 older Malaysians and expanding activity centers to combat isolation in old age.