This was a super big news before it was announced; so many media outlets were predicting the potential number. It was also hotly discussed after it was announced. Some say it’s low, some say it’s respectable. Some say it could have been better IF… Regardless, here’s that article on the details of the announcement by the EPF just a few days ago.
Here’s that news which should alarm many of us: 71pct of EPF contributors aged 55 and below do not have enough to rise above poverty level Briefly, this meant that for these 71 percent of EPF contributors, they will live under the poverty level for their savings versus the years they have to live with it. Malaysians are living longer yeah. Take this into account when we are talking about working past retirement.
Personal Finance 101: These are 5 important elements First of all, there are no links anywhere in this article for you to buy any savings
When the government first allowed EPF withdrawals, I was against it. Even from the FB comments and my conversations, it is safe to say that many of the ones saying they will withdraw since it’s allowed do not need it in the first place. To these people, the withdrawal either gives them money to invest (which is great) or the extra money to spend (which is bad). These people are not the actual target of the ones in need of funds during the pandemic. The real target were these people; people who needs the money for emergencies.
Actually it’s not just 28,000 because these 28,000 people may also have their family members who would also be affected too. In other words, this may potentially affect another 28,000 other people indirectly too. Before we become too affected, we should also know if these two companies are actually facing any financial issues at the moment.
I graduated in July 1998. Yes, now you know my generation is known as the Gen-X. It was in 1994 that I started that I enrolled in Inti Subang Jaya for my degree. At the time, all the colleges in Subang Jaya or Bandar Sunway does not have the attractiveness of today. In fact most of them do not even have University status! They are merely colleges and they could not even grant degrees at the end of the studies.
I think majority would answer YES. I actually do have many friends who does not need their salary every month. I tell you the story of three ladies. Yes, let’s skip the guys this round.
As per Department of Statistics, Malaysia, the median salary of someone working in Kuala Lumpur is RM10,549 while the median salary for someone working in Selangor is RM8,210. That means one would earn up to 30% extra per month if one were to work in KL instead of Selangor. Just need to note that this is median and that KL would have more of the high paying jobs because someone working within the KL CBD cannot be having a lower pay than someone working in Kajang. Else, better work in Kajang lah since properties in Kajang is much cheaper than KL.
This statement has been mentioned to me many times by many different people. In actual fact, EPF has given me one of the best returns for many years and for recent years, the returns are higher than my FD returns and higher than the home loan repayment interest which I have to pay. There’s no guarantee it could be the same in the future but my wish is for this to continue and remain as high as possible.
I have been investing for the last 24 years I think. I started buying unit trust way back in 2020. Haha. I continue to be invested in the stock market and the amount remain substantial. I do NOT look at my stocks every minute, hour and day. Call me lazy, call me busy or even just say I know what I am reallying buying into. I also have no cryptocurrency. I do not understand it enough.
If this is a question for me, “Should I withdraw my EPF before 55?” My answer is a simple one, NO. My main reason is because EPF savings is really for post-retirement, when our active income has stopped or has gone down significantly versus the time when one was still working full time and thus has monthly income. In fact, I would like to leave the savings in EPF inside EPF as long as possible so that I have something to fall back upon.