As part of a larger society, many of our lives tend to follow a certain structure. For example, many of us go to school around the same age, graduate and get a job.
When it comes to personal finance, there will generally be certain important milestones and events at different ages as well. We’ve compiled a list of personal finance schemes and decisions that many people experience in Malaysia.
At Birth
Depending on which state you live in, newborns may be entitled to financial assistance from the state government. For example, every child born in Sarawak are entitled to a RM1,000 financial assistance from the Sarawak state government under the Endowment Fund Sarawak programme.
At this age, some parents purchase prenatal and health insurance plans for their babies. For example, Prudential’s PRUMy Child Plus plan offers protection to babies and mothers starting from 13 weeks of pregnancy right up to when the child is 100 years of age.
Parents can start saving for the baby’s higher education through the voluntary National Education Savings Scheme, managed by the Ministry of Higher Education. Parents can open a Simpan SSPN Prime account under the scheme and start contributing any amount at any time. Eligible contributors can enjoy several benefits including annual dividends, income tax assessment relief, matching grants up to RM10,000, free takaful protection and death charity.
Parents also need to register the birth of their baby with the National Registration Department Malaysia and apply for a birth certificate at no charge. Any birth registration that occurs 60 days after birth (or 42 days after birth in Sarawak and Sabah) is considered late and you will incur a payment of RM50.
Birth certificates are an important document prior to getting an Identification Card. Birth certificates are typically required for important activities such as opening a bank account and registering for school.
Another important document newborns can apply for is your national passport. Parents can apply for a national passport for their baby at the Immigration Department Malaysia at a fee of RM100.
6 To 7 Years Old
You’ve reached the age to start compulsory education. Once a child turns six on the first day of January in the current school year, parents are required by law to enrol the child in a primary school. The compulsory basic education lasts for six years, which is the duration of primary school education.
Students from households with income of RM3,000 and below can apply for Back-To-School Assistance, which gives one-off cash aid of RM150 to cover school expenses in the beginning of the year, from Year One to Year Five.
At age seven, children will need to start paying when they take the public train or bus. Parents can get a reloadable Touch ‘n Go (TNG) card for their children at RM10 to pay for transportation fees.
12 Years Old
All Malaysians who turn 12 are obligated by law to apply for an Identification Card (IC). They can apply for the card with their parent or guardian at the National Registration Department Malaysia at no charge.
They must apply for the Identification Card within 30 days after the date they turn 12, otherwise they will be considered as registering late and will have to pay a fee of RM10.
13 Years Old
At 13, you can now start working, but with restrictions. You can only perform light work such as in any undertaking carried on by your family, public performances or a contracted apprenticeship.
14 Years Old
When you get to the age of 14, you can register and open an Employee Provident Fund (EPF) account. You can do so conveniently via the KWSP i-Akaun app. Do ensure that you have your Identification Card on hand for registration.
15 Years Old
You’ve reached the age where you can start working at a larger capacity.
16 Years Old
You can attend motorcycle driving course and get a motorcycle licence also known as licence B2.
Read Also: Class B, Class B1, Class B2: How Much Does It Cost To Get A Motorcycle Licence In Malaysia?
17 Years Old
Once you turn 17, you can attend a driving course and apply for a car licence to drive.
Read Also: How Much Does It Cost To Get A Car Driving Licence In Malaysia?
18 Years Old
You can now open a Central Depository System (CDS) account and trade in securities listed on Bursa Malaysia.
For Muslims, you can open an account with Tabung Haji at the nearest Tabung Haji counter. Tabung Haji is a government fund to help Malaysians save for their pilgrimage.
Individuals can apply for the PTPTN Education Loan Scheme, which provides loans to students under age 45 to pursue studies at local higher education institutions. The loan scheme covers part of their tuition fees and living expenses throughout their period of study. It will stop disbursement after students complete their studies and borrowers need to start repaying their loans at 1% interest within 12 months after the loan ends.
If you’re working, you’re required to contribute to the Social Security Organisation (SOCSO), which provides protection to an employee against accident or an occupational disease arising out of and in the course of his employment.
At this age, you’re qualified for affordable housing programmes. For example, residents in the Selangor state will be able to apply for Rumah Selangorku once they turn 18. To be able to apply, single or married residents need to have an income of RM10,000 and below.
Malaysians who first received their Identification Card at 12 years old will need to change to a new one at 18 years old.
You’ve also reached the legal age for marriage but will require written permission of a parent or guardian.
At this age, you can vote in elections. From December 2021, the government had lowered the minimum voting age from 21 to 18.
21 Years Old
Reaching 21 years of age is a significant milestone as you can now make a lot of important decisions on your own.
You can get married without the consent of a parent or guardian. You can apply for a credit card and a range of other banking services such as home and car loans.
You’re also able to apply for a vocational licence to drive commercial vehicles such as lorries and buses.
Lower-income earners are eligible to apply for cash aid under the Sumbangan Asas Rahmah (SARA). A total of RM600 will be distributed to single individuals throughout the year at RM50 per month.
Under the Rumawip/Residensi Wilayah programme, both single individuals and married couples residing or working in Kuala Lumpur who meet income requirements will be able to apply for affordable housing. To be eligible, the household income for single or married applicants need to be below RM10,000 or RM15,000 per month respectively.
40 Years Old
Lower-income earners and their spouses are eligible for free health screenings under the PeKa government initiative. Recipients of the Bantuan Prihatin Rakyat aid are automatically registered to be eligible for PeKa.
50 Years Old
When you reach the age of 50, you have the option to make a one-off withdrawal from your EPF’s Wellbeing Account to prepare for your retirement. You can opt to either withdraw a portion or the full savings in the Wellbeing Account.
55 Years Old
You can now access your entire savings in your EPF accounts. The total contributions in your Retirement Account, Wellbeing Account and Flexible Account will be consolidated into an Account 55. You can choose to withdraw your savings in Account 55 in full or partially.
Should you continue working after age 55, your following contributions will be deposited into an EPF Gold Account.
60 Years Old
At 60 years old, your contributions in Account 55 and Gold Account will be combined. You can choose to make partial or full withdrawals of your savings.
Read Also: EPF Withdrawal Timeline: When Can You Take Out Your Money
Follow Us On Telegram & Instagram!
Join our Malaysia Telegram channel (@dollarsandsensemy) and follow our Malaysia Instagram Page (@dnsmalaysia) as we bring you the latest finance content in Malaysia!
