Beware! RM1 Million in EPF Savings Is Really Not That Much When We Do the Calculations When we hear someone say: “I have RM1 million
Yes, I am as curious as all the EPF members who’s waiting to know how much dividend they will get. Guessing game will end on Saturday it seems. Today, many media outlets are reporting that the announcement will be this Saturday. Saturday is 28th February 2026. Yes, that’s like 24 hours away from the time this article is posted. An image showing what these media outlets are saying is here:
When someone retires and realized they have hundreds of thousands in their EPF which is suddenly theirs to use, what do you think could happen? Well, they could spend it wisely and stretch it sufficiently to cover for the next 15-20 years of their retirement life. Or they could spend it very quickly to buy things which they could not afford previously. Or maybe they could be scammed by someone and lose it all too.
The Employees Provident Fund (EPF) is expected to declare a dividend rate of between 6.3% and 6.5% for 2025, according to Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid.
Achieving RM1.3 million in EPF savings may be challenging for Malaysians, but experts suggest it’s possible through disciplined saving and employment strategies. Personal finance advice should include property investment and considering longer retirement ages due to rising living costs. Consistent salary growth is vital for building adequate retirement funds.
Without adding the changes in 2025 and relying on just 2024, median income for a household of a T5 category starts from RM20,738 per month (image below) . In other words, this household has a yearly income of RM248,856. If this household is contributing to EPF and has an employer also contributing to the EPF for employer portion, then this household’s EPF will have accumulated the following per year.
Yes, for my first ever property, I used the amount I have in Account 2. It helped because I did not save much and thus, the money comes in handy for the downpayment of 10 percent. It was just a property of RM123,000 but at the time, I have only worked for 5 years. So, the actual amount I have in Account 2 is definitely very small. From the total, 30 percent goes into Account 2 while 70 percent goes into Account 1. That was then, now, it’s 15 percent. We also have an Account 3 which is 10 percent of our the total contribution.
Earning 3.17 times but no EPF contributions means losing out on huge returns yeah Reduced savings for Malaysians earning SGD today versus previously In 23
The content discusses the distinction between being debt-free and achieving financial independence. It outlines various debt repayment methods, such as the debt avalanche, snowball, and snowflake methods, and debt consolidation. The author reflects on their personal financial journey, aspiring to achieve both objectives while acknowledging current debt obligations.
Do take a look at the history for EPF dividend performance over the past 10 years. I would say typically the number is below 6 percent. However, even at 5.5 percent, this is already more than 50 percent or more versus Fixed Deposit rates. In 2024, the declared dividend was 6.3 percent. Looking at the performance for the first 9 months of 2025 as well as the current positive momentum, it seems that the 6.3 percent which was spectacular last year will be eclipsed this year. One report says that it could be as high as 6.5 percent!
If we retire at the age of 60, we need to have enough funds to live comfortably for the next 20 years. This is based on typical life expectancy in the future which is quite real. If we like to reduce the number of years from 20, then we just need to work till 65 and we need just funds for 15 years or if we work till 70, then we need funds to be just 10 years. We can definitely live longer but for planning purpose, we should use a number and that’s life expectancy lah. So, what is the age that you want to retire also determines whether RM1 million is enough.
Despite all the news, as at today, November 2025, it’s still full withdrawal at 55 years old. You can keep your job, keep contributing but yes you can withdraw in full when you reach 55 years old. Wah… for me that’s just another 7 years to go. Haha. Looking forward? Well, take a look at the below for some ideas of what you could decide to do. Everyone has own prerogative and perspective too. Choice is yours to make.