Most of everyone will NOT have RM240,000 in EPF when they retire. What about you? Never ending studies and research and it’s showing the same
In my WhatsApp group, this was posted. I meant the image below showing EPF dividends over many years. I think the whole Malaysia, especially all the working people already know this happy news. When analysts say it is going to be higher than 6 percent for FY 2024, I already feel that it’s going to be over 6 percent. Final result? 6.3 percent. Below is the file shared in the WhatsApp group.
This piece of news did not come from me. The prediction must come from some analyst with lots of data which he / she could refer to in order to make such a prediction. I do not have such resources. How high is high and what is considered a wow? Well, FD rates are probably 3.5 percent. The potential EPF dividend rate is forecasted to be over 75 percent higher! That’s definitely a wow and worthy of a celebration, right? We cannot take out the money before we retire but it’s still our money. The more the merrier.
Even if the dividend percentage is the same as last year, it is close to double the fixed deposit rate. Thus, the chance is there for it to be higher than double? 🙂 It does seem to be so based on the reports after the announcement of the Q3 results for EPF. Another two positive projections and reasons are reported in NST. Both said that the rate would be between 5.7 to 6 percent. I would like to wish they are right and if possible for them to be wrong; their forecasts are lower than actual. 🙂 Read what they say below.
Are we worried that we may not have enough money when we retire in the future? I personally think EPF money is for the time when we no longer have income. That’s why it’s best not to touch it unless it’s for emergency purposes. It was revealed recently by the Finance Ministry that we have 3.86 million members who have withdrawn a total of RM10.78 billion from the Flexible Account aka Account 3 in the EPF. Perhaps some of them needed it for emergency purposes.
We know EPF is doing exceptionally well thus far for 2024. Way better than the 2023. Thus, expectations is that there is a possibility to exceed 6 percent dividends for 2024. I know, we could not touch the money until our retirement but it’s still a very good news. Last year, the dividend was very close to 6 percent. Below are EPF’s dividends over the years. Yes, we can see a 5 percent (except 2020) has been very much the theme.
EPF’s investment has been doing well actually. In fact 3Q24’s performance was very strong. Here’s the report: Article in thestar.com.my So, what does this mean to all the members? I know, we are unable to touch the money before we retire or well, you want to touch that Account 3… However, for the majority of us, the compounded interest continue to happen every year with EPF’s dividends. Thus, this is a good news indeed. Perhaps read what the analysts are saying. They have access to more numbers and can certainly do a better research too.
EPF has a total of over 8.6 million ACTIVE members and this includes me. So, anything positive about EPF is something positive for me and all the active members too. I mean if the member is inactive but they have funds in the EPF, they will be happy too since they will also be receiving higher dividends when the EPF is doing well. Last year was a good year and this year it seems that things are even better too. Let’s read on to understand what is happening in the first half of 2024 where incomes are concerned. Good news!
The last account; Flexible Account allows the member to withdraw money from this account anytime. As long as there is money inside the account. This is the explanation. “Akaun Fleksibel is designed to meet members’ short-term financial needs. Savings in Akaun Fleksibel can be withdrawn by members any time, subject to terms and conditions. However, members are encouraged to withdraw only for emergency purposes and immediate needs only.” Source: https://www.kwsp.gov.my/en/account-restructuring
When we do not have an EPF account, chances are we will spend all the money we earn which could have been part of the EPF savings for our perusal post-retirement. If we do not have an EPF account, then we also lose the employers’ portion of the EPF contribution. This is a big amount because it’s higher than employee’s portion. Thus, it’s double whammy for any worker who is working but is somehow not an EPF member.
Well, if we did not withdraw any amount and we continue to save from the day we started working at 25 until the day we retire at 60, chances are the amount will be substantial. The reason is simple, if we are working, we save 11 percent of our pay while our employer will put in 12 percent. In other words, at minimum, we have a total of 23 percent of the salary being saved every month for 35 years. Just the savings alone?
EPF News: Transfer funds in Account 3 back to Account 2 and Account 1? When we retire, we really do need to have money to