How Malaysians Earning RM1,700 Can Save RM1 Million by Retirement

For many of us, having RM1 million in the bank feels like an unattainable dream—a sum that promises security and financial freedom. But what if reaching this milestone doesn’t require a windfall or an extraordinary salary?

According to the Employees Provident Fund (EPF), even Malaysians earning a modest income can achieve this goal with consistent savings and discipline.

Earning RM1,700? You Could Still Save RM1 Million

EPF’s simulations reveal an inspiring fact: workers earning the minimum wage of RM1,700 per month can save RM1 million in their EPF account by retirement age, provided they maintain steady contributions.

For graduates starting their careers with a slightly higher income—around RM3,000 per month—this financial target becomes even easier to achieve.

EPF’s Head of Policy and Strategy, Balqais Yusoff, emphasized that consistent contributions, along with smart financial habits, are the keys to building a comfortable retirement fund.

Consistency Is the Key to Wealth

It’s not just about how much you earn but how consistently you save. Regular contributions to EPF, avoiding early withdrawals, and staying disciplined are critical factors in achieving long-term financial security.

EPF provides helpful savings benchmarks to guide Malaysians on their journey:

• RM57,000 in Account 1 by the age of 35

• RM76,000 across all EPF accounts by the same age

These benchmarks serve as checkpoints, ensuring contributors are on track for a financially secure future.

What RM1 Million Can Do for You

By the time you reach 55, EPF recommends having at least RM240,000 in Account 1.

With EPF’s annual dividend rate of 5.50%, this amount could generate RM1,100 in monthly dividends—providing a steady and reliable income stream during your retirement years.

This isn’t just about hitting a financial milestone; it’s about creating a safety net that allows you to enjoy your golden years without the stress of financial uncertainty.

Boost Your Savings with Voluntary Contributions

If you’re looking to grow your EPF savings even further, consider making voluntary contributions. By topping up your account beyond the mandatory amount, you can supercharge your retirement fund and enjoy higher dividend payouts in the future.

EPF’s message is clear: with discipline, consistency, and a long-term mindset, even those earning a modest salary can achieve financial freedom and security.

Start planning today, and your dream of a RM1 million retirement could be closer than you think.

Source: Awani