Eating into our EFP savings: Pakatan Harapan’s biggest blunder
But then that is how Pakatan Harapan plays populist politics. Even Tun Dr Mahathir Mohamad admitted that their 2018 Election Manifesto was bullshit and was meant to attract votes, but was unrealistic and could never have been implemented. However, by the time you find out, it will be too late, just like what is happening to your EPF savings.
NO HOLDS BARRED
Raja Petra Kamarudin
Destroying the financial future of the poor
The Malaysian Insight
The Employees Provident Fund (EPF) estimates that the minimum savings needed for retirement is RM240,000, which is based on the calculation of RM1,000 per month for 20 years. Before Covid-19, 67% of those registered with EPF did not meet that minimum, and 50% of contributors above the age of 54 have savings below RM50,000. Clearly, Malaysians did not have enough savings for retirement even before the pandemic. (READ MORE HERE)
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More than 30 years ago, Bank Negara Malaysia estimated that to retire comfortably you will need at least RM500,000 in your EPF savings. That estimate of RM500,000 was made more than 30 years ago.
In the article above, The Malaysian Insight estimates you will need about RM1,000 a month or roughly half that estimate of RM500,000 made more than 30 years ago.
Anyway, you be the judge as to how much you need every month to enjoy your retirement, assuming you live another 20 or 25 years after you retire.
My opinion, though, is you will need at least RM2,000 a month for a simple lifestyle if you no longer have car and housing loans to pay, you do not go for umrah trips or skiing holidays every year, and you do not need to give your kids any money every month.
Nevertheless, whatever it may be, the majority of Malaysians do not have enough money to live on when they retire. And tight finances can cause depression, and in more severe cases this can actually lead to suicide.
And this was why I was against the campaign by Pakatan Harapan and Umno to allow Malaysians to withdraw their EPF money NOW to pay for their needs. Even former Prime Minister cum Finance Minister Najib Tun Razak was campaiging in favour of withdrawing the EPF money now.
It was a political thing by Pakatan Harapan and Umno. Because of this, the government buckled and allowed the withdrawal of EPF savings. It was the only way to stop the critics from shouting and screaming and to make the people happy.
Sometimes you cannot spare the rod and spoil the child. The government needed to help the people, of course. But it should have been through government aid, not by allowing the people to eat into their EPF savings and face a possible bleak future when they retire.
The government critics play populist politics and the government buckled.
No GST. No import duty on cars. No toll charges on highways. No road-tax. Free healthcare. Free university education for every Malaysian who qualifies. Minimum wage of RM2,000 a month. Free iPhone for every Malaysian. Free iPad for every student.
You name it, they want it.
But all this will cost money. So the government cannot give everything which the people ask for.
The UK is spending huge sums of money to help its citizen. But once the Covid-19 pandemic is over, we will have to pay back all the money that is being spent today. Yes, the money is not free. We are spending today what we will need to pay back in future. So expect taxes to go up.
It is the same with your EPF money. You take out your savings and spend it all today. So Pakatan and Umno are good. They forced the government to allow you to withdraw your EPF money today.
Many years from now, when you retire, you will curse those people who forced the government to let you spend your EPF money today. You will say the aid money should have come from the government and not from your own savings.
But then that is how Pakatan Harapan plays populist politics. Even Tun Dr Mahathir Mohamad admitted that their 2018 Election Manifesto was bullshit and was meant to attract votes, but was unrealistic and could never have been implemented. However, by the time you find out, it will be too late, just like what is happening to your EPF savings.
