1Malaysia Retirement Savings Scheme Extended to Housewives

1Malaysia Retirement Savings Scheme Extended To Housewives Housewives now have a chance to plan for their sunset years under the 1Malaysia Retirement Savings Scheme – a government’s initiative to encourage the self-employed and those without a fixed monthly income to save for their old age. Implemented by the Employees Provident Fund (EPF) in January 2010, the scheme has to date, attracted some 14,786 individuals with total contributions amounting to RM13.2 million. “The scheme has growing appeal to taxi drivers, fishermen, farmers, hawkers, petty traders, artists, freelancers such as disc jockeys and the like. We are now aiming to target and would welcome housewives to join in this scheme,” said Tan Sri Azlan Zainol, Chief Executive Officer of the EPF. The scheme, open to individuals up to the age of 55, was specifically introduced by the Government to provide a degree of financial security to individuals who are self-employed and without a fixed monthly income. In addition to receiving the annual dividends from the EPF, contributors will also benefit from an additional 5 per cent government contribution, up to a maximum of RM60 per year over the next five years from 2010-2014. “With intensified efforts to create greater awareness of the 1Malaysia Retirement Savings Scheme and coupled with our constant communications to the self- employed sector of the population, we are optimistic that the number of contributors will grow,” said Tan Sri Azlan. “It has been a most encouraging start and we strongly feel that this retirement scheme will catch on with more contributors, especially housewives. Its appeal is based on two factors. Firstly, everyone knows it is the right sensible thing to do, that is, to save for their retirement years, and secondly, they find it affordable to set aside – whenever they can -- as low as RM50 per month as their retirement savings,” he explained. Unlike the mandatory EPF Savings Scheme for employees, contributors are not compelled to deposit savings on a monthly basis but rather, when they can afford to. Contributors are allowed to contribute up to a maximum of RM5,000 per month. “The scheme gives the self-employed plenty of flexibility, allowing contributors to channel an amount they are most comfortable with without it becoming a burden,” added Tan Sri Azlan.

1Malaysia Retirement Savings Scheme Extended to Housewives

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