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ALTHOUGH the government estimates that two million contributors to the Employee Provident Fund (EPF) can make monthly withdrawals from their Account 1 under the i-Sinar facility, financial planning expert Datuk Chua Tia Guan doubts that everyone is desperate enough. like to do it.
He reminded these taxpayers that unless they have no other choice, they should think three times before putting their hands on their retirement savings.
He said that according to government statistics some 500,000 Malaysians have lost their jobs in the wake of the Covid-19 pandemic, but now up to two million EPF contributors who are unemployed, have to take unpaid leave or have lost their income, they have the right to make withdrawals from their account 1.
He said taxpayers should view the facility as an option rather than a “must.”
“The (i-Sinar) facility will help people really in need. After all, if you can’t put food on the table, is there a future to think about or worry about?
“The measure is intended to help those facing critical financial problems, such as not having money to buy bread and butter, people who are really struggling to survive.
“I’m not sure if there are two million people who are in such a situation,” said Chua, who is the head of tax and financial consulting at Asia Business Center Malaysia.
He told China Press in a report published yesterday that those facing financial problems should try to alleviate their problems through the loan repayment moratorium, withdrawals from their EPF 2 Account and the benefits of the Employment Insurance Plan.
Chua advised taxpayers to withdraw from their Account 1 only when they are still unable to put food on the table after seeking the resource mentioned above.
“Investing in EPF accounts will definitely affect life in retirement. Furthermore, 32% of EPF contributors have less than RM5,000 in their Account 1 “.
He also advised taxpayers unfamiliar with the stock market not to withdraw money from Account 1 to venture into stocks.
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