Good news about my EPF (maybe it’s yours too?)

Good news about my EPF (maybe it’s yours too)

Is EPF performing well? Are they giving us great returns for our savings? Well, it really depends on what you compare it against, right? Some would say their stock investment has higher returns. Well, not everyone can say they have the expertise and the time to do stock investment. So, for the most of us, maybe the comparison will not be with the stock market. My personal opinion is that EPF has performed very well and actually it’s way better than the FD which we can achieve by putting our money into the bank. Here are the dividends for the past 10 years as a reminder.

Returns are also high because Ringgit did not depreciate much versus US$

Take a look at the exchange rate for the past 5 years. Ringgit seems to be doing okay versus so many other currencies of the world including most of our neighbors except for Singapore. When things are a little uncertain, here in Asia, the star currency will be Singaporean Dollar. So, with the war(s) happening and the oil prices fluctuating and people need a stable and strong currency to park their money, SGD… or Swiss Dollar would do well. I have no explanation for Mexico. Take a look at below:

Source: Thinking Ahead Institute

EPF is well ranked versus other sovereign funds of the world

Please do remember that Malaysia is a small country. Our population is just 35 million or so. So, for EPF to be ranked at 11th in the world of sovereign funds where assets are concerned is indeed encouraging. I am proud of our achievement. A small country punching above its weight when it comes to EPF versus others.

Source: Thinking Ahead Institute

We could also save more money into EPF too

We could do it via Voluntary Contribution (i-Simpan) (formerly known as Self-Contribution). This helps us to our retirement savings with EPF. Top up our savings anytime and we could save up to RM100,000 per year. This is the limit per year. You can save another RM100,000 the next year. Just need to note that this is the maximum amount including all deductions too. So this is an extra RM100,000 not on top of your current contribution. Do it via KWSP i-Akaun App or online banking. You can do this as long as you are a Malaysian or a Permanent Resident who is an EPF member and is below 75 years of age.

Happy saving more.

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