Saving for retirement can feel like a daunting task, especially with rising living costs. But here’s some good news – Budget 2025 has some exciting benefits aimed at boosting your retirement well-being in Malaysia!
Let’s break down the key initiatives:
1. More Support for Gig Workers and Self-Employed (i-Saraan Programme)
The i-Saraan programme allows self-employed individuals or those without steady income to contribute to the EPF (Malaysia’s national retirement fund) and receive an additional “top-up” from the government. Now, the government’s matching rate will increase from 15% to 20%, up to a maximum of RM500 per year (with a lifetime limit of RM5,000). This increase will start on 1 January 2025 and aims to support over 330,000 Malaysians who want a secure future, even if they don’t have an employer contributing for them.
So, if you’re a freelancer, small business owner, or part-time worker, joining i-Saraan could make a big difference for your retirement savings.
2. Extra Support for Housewives to Save for the Future (i-Suri Programme)
The i-Suri programme was created to help housewives save for retirement by offering a special government incentive to those registered in the e-Kasih database. Under Budget 2025, the government will continue matching 50% of the yearly contribution you put into your i-Suri account, up to RM300 per year and RM3,000 in total, or until reaching the age of 55, whichever comes earlier.
This means that even if you aren’t working outside the home, you can still build up some savings for your future. It’s a simple, low-pressure way for housewives to plan ahead and have some financial security.
3. New Option to Share Savings with Family (Intergenerational Transfer)
The EPF is also planning to allow members to pass on their retirement savings to family members. While details are still in the works, this new option could make it easier for families to support each other financially and create a secure future for loved ones. It’s a forward-thinking change that gives families more control over their retirement savings.
4. EPF Coverage for Foreign Workers
In a significant move, EPF coverage will be expanded to include non-Malaysian workers. Previously, non-Malaysian workers could only contribute to the EPF voluntarily, but now the government is making it mandatory. This change will give over two million foreign workers in Malaysia access to EPF benefits, ensuring that everyone working here has some level of financial protection.
This step not only helps foreign workers save for the future but also ensures that Malaysia’s labour market remains fair and competitive, aligned with international standards.
In Summary
These updates to the EPF aim to make retirement savings more accessible and fair for all. Whether you’re a self-employed worker, a housewife, a foreign worker, or just interested in supporting your family’s future, there’s something in Budget 2025 for you..
Want to learn more?
The official announcement from the Employees Provident Fund (EPF) provides further details about these exciting changes. Check out the full report here.
Remember, a secure retirement starts with smart planning and taking advantage of the resources available. Start saving today and look forward to a happy and financially secure future!
#Budget2025 #EPFUpdates #RetirementSavings #iSaraan #iSuri #Malaysia #FinancialSecurity #GigEconomy #ForeignWorkers #RetirementPlanning #KwasaDamansara #EkonomiMADANI
