Some employees will be able to benefit from the proposed changes to the pension fund – allowing retirement fund members to access a portion of their savings in cash before retirement. Finance Minister Enoch Godongwana has reiterated that the trustees of the retirement funds will have the final say on whether or not their members can withdraw a portion of their pension fund. The proposed reforms are aimed at assisting workers to deal with the impact of COVID-19 salary freeze, job losses and reduced wages.

For more news, visit sabcnews.com and also #SABCNews on all Social Media platforms….(read more)

LEARN MORE ABOUT: Retirement Annuities

REVEALED: How To Invest During Inflation

HOW TO INVEST IN GOLD: Gold IRA Investing

HOW TO INVEST IN SILVER: Silver IRA Investing

The annual budget is always a hot topic for both individuals and businesses. It sets the financial plan for the government and outlines how much money will be spent on various sectors. The Budget 2022 has brought some good news for the employees, as they can now benefit from the proposed changes to the pension fund.

As per the proposal, the government has proposed a contribution increase from 5% to 7% of an employee’s salary in the Employees’ Provident Fund (EPF). This move is aimed at encouraging individuals to save more for their retirement, which is a critical aspect of financial planning.

The increase in the contribution will not only help individuals financially, but the country’s overall economy will also benefit from it. With more savings in the pension fund, individuals will have more disposable income to spend, which could increase consumer spending and boost the economy. Furthermore, it can reduce the financial burden on the government as they will have to provide fewer pensions support.

The proposal will not be applicable to all employees. Those earning less than RM5,000 a month will not be affected, and their contribution will remain at 5%. However, high-earners who currently contribute more than the maximum amount of RM150 per month will still have a cap of RM150 per month.

This change has been welcomed by many employee representatives as they feel it will help individuals save more for their retirement, which is usually neglected due to various challenges faced by individuals during their working life. With the rise in healthcare costs and increased life expectancy, individuals need to start investing in their retirement to have a comfortable life post-retirement.

Overall, the proposed changes to the pension fund will positively impact the employees and the economy, encouraging individuals to invest in their retirement savings, and prepare for the future. It highlights that the government is taking steps to provide a more robust financial security system for its citizens, and we can expect more such moves in the future.