The Employees’ Provident Fund’s (KWSP) Head of Policy and Strategy Balqais Yusoff recently sat down for an interview with Astro Awani, in which she discussed several matters regarding the federal statutory body’s initiatives, as well as its members’ retirement savings.
One of the more interesting tidbits from the interview was regarding simulations made by KWSP on the amount of savings Malaysians can accumulate by the time they reach retirement age.
KWSP simulations reveal that an individual with a RM1,700 starting salary can save up to RM1.1 million by retirement age
Balqais Yusoff
Stressing that retirement is not scary if it’s planned early, Balqais revealed that one of the simulations performed by KWSP showed that an individual with a starting salary of RM1,700, (the current minimum wage) can accumulate RM1.1 million in savings by retirement age.
She added that this figure surpasses the basic and adequate savings benchmark for retirement today and is even close to the enhanced saving threshold. However, Balqais noted that these benchmarks may change once the individual reaches retirement age due to inflation and an increase in the cost of living.
For illustration purposes
She elaborated that for an individual with a starting salary of RM1,700 to achieve up to RM1.1 million in savings by retirement age, the simulation showed that they need to consistently contribute to KWSP every month and have a salary increment of 3% annually.
Meanwhile, for a university graduate who starts their career with a starting salary of RM3,000, Balqais asserted that a KWSP simulation revealed that with a prudent and conservative KWSP savings dividend of 5% annually, they can accumulate over RM2 million in savings by retirement age.
For illustration purposes
She asserted,
“People can get to that retirement goal, and the number one thing they need to do is to be consistent,”
Watch a snippet of the interview here:
So, what do you guys think of KWSP’s simulations on its members’ retirement savings? Share your thoughts with us in the comments!
