Advertisement Banner

Using future money today is not a wise move.

Future money is usually meant for the future. Usually, there would be a time when we stop working altogether. If the income continues, that is great news. Kudos to everything you are doing today. However, if income stops when we stopped working, that’s when we needed to rely on money which we have started saving way earlier. We can also call this savings or sometimes, forced savings as future money. Since this is future money, using all of it today is definitely not a wise move.

It’s for those who REALLY needed the money for survival

Yes, we are talking about the i-Sinar which is SUPPOSED to be for EPF members who lost their jobs and needed the money to SURVIVE. I repeat, to survive and NOT to take it out for investments… or for some online purchases or even as downpayment for a new car. Well, this has happened yeah. Over 30 percent of EPF members have withdrawn their money from Account 1 under i-Sinar. This is a total of 1.6 million people. Total members who have lost their jobs since COVID-19? Actually, probably about 10% of this number. Sigh… Read on for the news.

future money
Photo by Meru Bi on

Article in About 30% or 1.6 million members of Employees Provident Fund (EPF) may have exhausted nearly all of their retirement savings in Account 1, leaving a minimum required balance of RM100 in the aftermath of various Covid-19 related programmes. This is not the only bad news. Outgoing EPF CEO Tunku Alizakri Raja Muhammad Alias also shared that close to 60% or three million members have or will use up all savings in Account 2.

He said, “We are very concerned about these numbers, but we will be doing a lot more activities to educate our members and come up with products and services to ensure that members will see EPF as the place to put their retirement savings.” Do refer to the full article with a lot more details here: Article in

Please note that we need to have enough for maybe an extra 20 years?

When we stop working at 60 years old, we still need to have enough money to last until 80 years old yeah. This is going to be the typical life expectancy for Malaysians in the near future. This is no longer like long time ago when we are expected to only live till 65. This is why beyond just savings alone, we need to invest our money for higher returns. Diversification is super important too and perhaps property could be that hedge against inflation. (read here for the reason why)

As we get older, it gets harder

Whatever amount we have in our EPF account, if we use this years’ dividend (Read here for what EPF declared) as benchmark meant that the money will double in less than 10 years. It meant that if we have RM10,000 by 30, this money would become RM20,000 (even without including additional deductions from 30 years old to 40 years old). By the time we reach 40, this money would have become RM40,000 and by the time we reach 50, this money would have reached RM80,000. When we stop working at 60, the money in EPF has reached RM160,000. We have not included any additional deductions for the last 30 years yeah. Now, imagine if we have withdrawn all the amount and our account has just RM100 left…

Happy understanding that the ability to multiply depends on what we have at the start.

Love news like this and more? Sign up for daily investment news updates.

Please LIKE FB page to get daily updates about the property market beyond articles. Else, follow me on Twitter here.

Sign up for KopiWeekly. (only once per week of property, finance, investment news and more)

Next suggested article: It’s always in this order. Salary – Savings – Invest. Which stage are you today

Property Investment always start with knowledge. Equip ourselves with more here.

One Response

Leave a Reply

Your email address will not be published. Required fields are marked *

Motion arrow towards right
Motion arrow towards right
Charles Tan The Founder The Writer Kopiandproperty
Charles Tan

Charles is Founder of He writes from his investment experience for the the past 20 years in investments including property, stock, unit trust and more as well as readings and conversations with many property gurus in the industry. is an independent property blog which is not affiliated to any media company, property developer or even real estate agencies.

Advertisement Banner

Facebook Comment

Table of Contents

Most Recent Posts

join the family

Like us for daily investment news and more

Hit the like

%d bloggers like this: