CLICK TO ENLARGEPETALING JAYA: With the country’s economy entering into recovery mode, it is timely to put in place comprehensive social safety nets and measures to boost the retirement savings. Economists when contacted by StarBiz generally opined that the government should seriously look into retirement security, especially after the Employees Provident Fund’s (EPF) retirement savings took a hit from the Covid-19 pandemic.The Covid-19 has disrupted businesses and livelihood, and those in dire need had been forced to withdraw from their EPF savings via the i-Sinar and i-Citra schemes, resulting in lower retirement savings. To ensure retirees have adequate savings throughout their retirement, economists suggested measures including the reinstatement of the EPF contribution rate by employees, option to contribute at a higher rate, raising the maximum amount of the EPF allowable for tax-deductions, increasing the retirement age as well as deepening financial literacy to enhance retirement savings. “This will also diminish the retirement savings of the low and middle income households,” explained Yeah. While the decision to withdraw from the retirement savings is regrettable, especially for workers in their 30s, 40s and 50s, he acknowledged that it may be unavoidable.
