Employees Provident Fund (EPF) has always been a hot
topic, from the previous Government
permitted “withdrawals” during the pandemic to the present Government disallowing further withdrawals (afraid it would lead
to a financial crisis) and allowing emergency loans through an EPF collateral
agreement. The latter used median studies to “contribute” MYR 500 to EPF members with less than RM 10,000 in their accounts.
Baffled/bewildered by the current Government’s generosity and highlighted in this paper, I used
Monte Carlo simulation, a method used by analysts when determining the size of
a client’s
portfolio to support their desired retirement lifestyle, to establish a
reference-type table displaying ideal savings when reaching 50. The Government
could use the table mentioned above to give more meaningful contributions to
EPF members, apart from EPF active and inactive members, knowing where they
stand concerning their current EPF savings.
References
[1]
KWSP/EPF (2023) http://www.kwsp.gov.my/
[2]
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