“To put it simply, if a person is drawing a monthly salary of RM6,000 prior to retirement, he or she will need about RM4,000 as his monthly retirement income to enjoy the same quality of life which the person has been accustomed to,” he said. This requires an individual to put aside the equivalent of at least one third of his salary every month. As daunting as that sounds, Ong pointed out that most workers already have what amounts to 23 per cent of their salary going into their EPF ― 11 per cent from the individual and 13 per cent from the employers. “As such, the gap we need to address is 10 per cent, which the public can now contribute to the PRS (Private Retirement Scheme),” he told Malay Mail Online over an e-mail interview. PPA provides the central administration for the PRS, which was introduced in 2012 as a voluntary long-term investment scheme for retirement savings, which is currently eligible for up to RM3,000 in annual tax relief. - See more at: themalaymailonline/malaysia/article/retirement-crisis-brewing-as-epf-savings-suggest-pensioner-poverty#sthash.NHnjFEcz.dpuf
Posted on: Wed, 05 Nov 2014 15:15:18 +0000
Trending Topics
© 2015