Malaysia's largest pension fund has decided to raise the minimum savings for its contributors to ensure they have more money in their twilight years, but this indirectly cuts investments into the country's vibrant unit trust industry.
The new rules by the Employees’ Provident Fund (EPF) to cut investments in unit trusts comes at a time when rising costs have shown contributors' savings are not enough to cover retirement after turning 55, five years below Putrajaya's new retirement age of 60.
“The EPF will revise upwards the basic savings quantum of its members to RM196,800 by the age of 55 effective January 2014, to ensure enough savings to finance members' retirement needs,”