Subscribe in a reader | Subscribe by Email So, EPF is launching a scheme for the self-employed. There are many self-employed people in Malaysia, and they come from all walks of life. Some may earn tons of money, while others barely scrape through day after day. For some of them, this would be a good scheme as it offers a channel to save money for retirement. For some others, there will be skepticism since they may know channels that give higher returns than EPF. Or, maybe worried that if they save a lot, income tax people will come looking for them 🙂 The really skeptical group would say that government lacks money, and this is one way to generate fund to mobilise development projects. Well, each to his own.
No one is forcing the contributor to save, so its entirely up to the person to consider this scheme. If you prefer other instruments like unit trust, ASN/ASB, real estate, precious metals, FD etc, so be it.
The Employees Provident Fund (EPF) will launch the 1Malaysia Retirement Saving Scheme on Jan 3 to help the self-employed cope with income inadequacy during retirement.
EPF chief executive officer Tan Sri Azlan Zainol said the scheme, announced by Prime Minister Datuk Seri Najib Tun Razak during the tabling of the 2010 Budget in October, was to care for the welfare of the self-employed who had no formal retirement savings scheme.
It was designed to provide individuals without a fixed monthly income with financial security in their old age, he said in a statement.
The scheme was also open to self-employed individuals such as hawkers, night-market traders, real-estate agents, freelancers like disc jockeys and fitness instructors, singers and actors and online business owners.
“The Government is sensitive to the fact that adequate retirement savings remains a major concern for all Malaysians, in particular the self-employed, especially those without a fixed monthly salary.
“The 1Malaysia Retirement Saving Scheme offers this group of contributors flexibility in determining how much they can afford to save for their retirement,” he said.
Azlan said that unlike the conventional EPF saving scheme, the amount contributed into the 1Malaysia Retirement Saving Scheme was entirely at the contributor’s discretion.
“Contributors can opt to set aside a minimum of RM50 or a maximum of RM5,000 per month as retirement savings.
“Contribution is voluntary and contributors are also not required to contribute savings on a monthly basis but rather what and when they can afford,” he added.
Azlan said contributors would receive annual dividends declared by the EPF, in addition to a 5% contribution from the Government subject to a maximum of RM60 per year over the next five years from 2010-2014.
Those interested can apply for the scheme at any EPF branch nationwide, or download the KWSP 16G (1M) Form from the EPF website at www.kwsp.gov.my from Jan 3.
The forms are to be returned at any EPF branch or by mail.
However, individuals who are not EPF members have to register with the EPF first.
Existing EPF members who turn self-employed are also eligible and may opt for this new scheme.
