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How is the figure above obtained?
Basic Savings is an amount of savings to be put aside in Account 1 progressively at various pre-determined age levels so as to enable a member to accumulate a minimum savings of RM120,000 at age 55 years.
A member needs to have the required amount of savings at the pre-determined age levels. 20% of 'amount in excess' of the 'basic sum' can be invested in products offered by approved Investment Institutions.
The 'amount in excess' must be at least RM5,000. If you have this 'amount in excess', then the formula below is used to calculate the 'permitted amount to be invested'.
Permitted amount to be invested = (Account 1 – Basic Savings) x 20%
Age (Years)
Basic Savings (RM)
Age (Years)
Basic Savings (RM)
18
1,000
37
34,000
19
2,000
38
37,000
20
3,000
39
41,000
21
4,000
40
44,000
22
5,000
41
48,000
23
7,000
42
51,000
24
8,000
43
55,000
25
9,000
44
59,000
26
11,000
45
64,000
27
12,000
46
68,000
28
14,000
47
73,000
29
16,000
48
78,000
30
18,000
49
84,000
31
20,000
50
90,000
32
22,000
51
96,000
33
24,000
52
102,000
34
26,000
53
109,000
35
29,000
54
116,000
36
32,000
55
120,000
Table: Required Basic Savings In EPF Account 1
For example, a 30-year old EPF member who has RM30,000 in his EPF account. The excess of Basic Savings in Account 1 would be RM12,000. The allowable withdrawal for member’s investment will be (RM12,000 * 20%) RM2,400. The minimum amount of savings that can be withdrawn is RM1,000 and can be made at intervals of three months from the last transfer, subject to the availability of the Basic Savings requirement in Account 1.
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