The Impact of The New Basic Savings Table for EPF Members Investment Scheme Effective Jan 2014

With the coming introduction of new basic savings table in Jan 2014, many EPF members as well as unit trust consultants worry or they don’t have much ideas how it is going to impact them.

We have done a simple analysis with a few assumptions. Our benchmark is the people at the age of 40 and have a balance of RM200,000 in Account 1 EPF. Their Basic Savings increase by 57%. However when we calculate how much they can actually withdraw from EPF – it shows that the decrement is only 16%.

You can use the table for other than 40 years old as well. Our assumption is that, we start their balance in account 1 at the age 40 by RM200,000 and increase by 10% yearly for above 40 and decrease by 10% yearly for below 40. If you have the Excel file you can just simply change the figure as you wish. Sms 013-3640043 or whatsapp me for the excel file

The second analysis, we want to show you the impact if your account balance in Account 1 varies from RM100,000 to RM500,000 at the age of 40.

If your Basic Savings in Account is RM300,000 then you are eligible to withdraw RM46,200 instead of RM51,200. A decrease by RM5,000 that represent 10% decrease.

In the beginning many unit trust consultants said this is very very bad for their business. With the analysis above, the increment of 57% for 40 years old members will give a reduction of between 8% to 24% reduction to unit trust consultant income. Yes, it still a reduction of an income. As a businessman, we must think ways on how to mitigate this:

1. Increase no of clients starting NOW

2. Increase your average case

3. Service your existing clients supaya tak lari and give you more referrals


Arif Ismail is a unit trust consultant. He leads an agency (Caliph Advisor) of 399 unit trust consultants and managing more than RM150 mill unit trust investment. Register for his seminar at for you to become a unit trust consultant and for his Seminar Bijak Wang 2013 for FREE

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