EPF’s dividend is going to be quite a wow it seems

EPF’s dividend is going to be quite a wow it seems

The higher the merrier, of course

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.

Article in malaymail.com The Employees Provident Fund (EPF) is projected to announce a dividend rate of between 6.0 per cent and 6.2 per cent for 2024, supported by robust global and domestic economic conditions, said an analyst.

The head of investment research at UOB Kay Hian Wealth Advisors Sdn Bhd, Mohd Sedek Jantan, highlighted that a resilient global economy, strong equity market, favourable fixed-income yields, and a recovery in private equity activity are the key drivers behind the anticipated strong performance.

“EPF’s diversified investment strategy, spanning equities, fixed income, private equity, and foreign assets, positions it well to deliver a stable and competitive dividend payout for 2024,” he told Bernama.

Mohd Sedek also noted that the Malaysian economy, which expanded by 5.1 per cent in 2024, played a crucial role in boosting investment returns. Read the full article here: Article in malaymail.com

History of EPF Dividends?

What is the minimum dividend EPF is bounded by law to pay the members?

The minimum dividend rate for the Employees Provident Fund (EPF) in Malaysia is 2.5% per year. This is guaranteed by the EPF Act 1991. Source: kwsp.gov.my. In other words, the worst case scenario is that the return is 1 percent below the typical FD rates of today. That’s not a bad thing at all yeah.

How much is 6% for a RM200,000 savings?

If we have RM200,000 savings today, we will receive RM12,000 in dividend. This is like a salary of RM1,000 per month! If we have RM500,000 then we will have RM30,000 dividend. This is RM2,500 per month! If we receive such dividends for the next 15 years, it will mean we will have over RM1,000 per month or RM2,500 per month for the next 15 years when we retire. We have yet to add the dividends on top of these dividends. Keep the money in the EPF versus withdrawing it and then using it to buy something which will not help us financially in the future.

Happy knowing and deciding.

Do not miss all the important happenings whether in property or other investments! It takes 5 seconds to sign up.
Sign up for daily investment news updates (FREE since Nov 2013 and FOREVER). 

Alternatively, Follow me on Telegram here.

Please LIKE kopiandproperty.com FB page to get daily updates about the property market beyond kopiandproperty.com articles.