We’ve all dreamed of having RM1 million in the bank—a sum that feels like a golden ticket to a secure and stress-free life.
But what if getting there doesn’t require a jackpot or a high-flying career?
According to the Employees Provident Fund (EPF), even those with modest incomes can build a solid financial future with consistent contributions.
M’sians earning RM1.7k monthly can save RM1mil
Here’s the surprising part: EPF simulations show that even a worker earning the minimum salary of RM1,700 can reach RM1 million in their account by retirement age.
For graduates starting their careers with a higher salary, like RM3,000, the goal is even easier to achieve.
Balqais Yusoff, Head of Policy and Strategy at EPF, recently shared that steady contributions to the fund—paired with financial discipline—can lead to a comfortable retirement.
This RM1 million figure doesn’t even include any extra savings or investments you might have along the way.
The key is in consistency
It’s not just about how much you earn—it’s about how consistently you save. Regular contributions, avoiding early withdrawals, and staying on track can make all the difference. EPF has outlined savings benchmarks to help Malaysians gauge their progress:
- RM57,000 in Account 1 by age 35
- RM76,000 across all EPF accounts by the same age
These figures act as checkpoints to see if you’re on the right path toward a financially secure future.
Why it’s worth the effort
By the time you’re 55, EPF suggests having RM240,000 in Account 1.
This amount, paired with EPF’s annual dividend rate of 5.50%, could give you RM1,100 in monthly dividends—a steady income to ease your retirement years.
This isn’t just about hitting a financial milestone; it’s about creating a safety net that allows you to enjoy retirement without financial worries.
Make the most of your EPF
If you want to get there faster—or grow your savings even more—consider voluntary contributions.
By topping up your EPF account beyond the mandatory amount, you can supercharge your fund and enjoy higher dividend payouts in the future.
