Btw withdrawal for above 1M is going to change under Ria framework so don't be so happy if you hit 1M.

I remember we need 1.3M and above before can withdraw but can't remember the timeline

Nowadays everything needs apps

Banking, ASNB, EPF,  various Socmed, Telco, local council, parking, e-wallet etc.

For those who are not near 55, yet near to 1m it is a very annoying thing.
Especially if you are have plans to retire early.

You know why? The last statement by EPF saying they will revise the 1.3M figure upon review come 2028.

In my personal case, it’s a chase I don’t think I’m willing to participate in for voluntary contribution. I may be permanently parking anything from 100k to 1.3M if they decide to raise it by 100k every year from now on, since I am 43. Assuming I have 100k per annum of spare money to save. This annoyance is real.

Just my 2 cents...

Cent #1 - Those who get to reach rm1mil or more at a young age (without self contribution top up) usually means that person is already doing quite well and no need to rely on EPF... Usually will not want to withdraw money out also...

Cent #2 - In the first place, EPF is meant for retirement use and the cap of 1mil before allowing to withdraw excess amount is set long time ago so maybe last time can say rm1mil in EPF more than enough to retire. But nowadays most likely rm1mil alone might not be enough so I can understand why they wanna increase to rm1.3mil.... this policy allows some flexibility to withdraw out your retirement money while at the same time ensures that when you reach 55 years old still got money to spend also... As for why 1.3 and not 1.1 or 1.5m? I don't have access to the data and decision making process... 😊

that's my guess too. Maybe even underpaid dividend. Payout higher than ASB1 considered very give face already.

your analogy totally not related in my opinion... just my opinion...
you are free to drive any time you want in the first place.....

the analogy for car would be...

you are forced to allocate some of your petrol and put it away whenever you pump full tank for your car...
but once you put away enough barrels of petrol, you can choose to use the additional petrol however you like.... doesn't matter if you plan to drive more or speed or not....
but maybe many years down the road...the petrol cost is no longer cheap...so the cap limit to store the extra petrol is added to ensure you still have enough petrol to use later on...

I understand his analogy but i think it's totally not related la....
i think he understood mine also but maybe mine more correct so he refuse to admit and say he understood it... haha... is okay...for discussion sake only... i'm not here to win any argument but just share opinions... 

Oh well it is what it is, nothin' much can be done about it.

Yup the expenses actually starts counting at retirement age + 1 (assuming by 60 you are still working, and you start relying on epf at first month of 61)

In the breakdown, the greyed out expenses are actually not counted, but act as a preview of how expenses hike up under the influence of inflation. Only the year with red expenses are deducted.

I think the forecast is just for spending post retirement, which should significantly fall given the loss of income, and presumably fewer big ticket items by then.

98% payout ratio only could mean that the "buffer $$$"  for 2025 dividend is low side...

No wonder EPF boss & some analyst already gave "advance warning" of not hopping another "excellent dividend rates" for 2025....

But 2022 payout ratio is like 105% oohh...

So 2023 one needs to cover back? No?

🤔🧐

for 2024 figures, 1250b is total investment assets instead of AUM & 74.46b is total investment income instead of net income.

From the data, the payout ratio looks to be a....non-issue.

Depends on where we draw the line on what constitutes underpaying. And then the strategy.
Perhaps EPF has identified an opportunity in the coming year which it needs a fund pool of a certain size to capitalize. An argument can be made to underpay a certain year in to keep funds available for better profits for members in a coming year.
I'm merely speculating on one such scenario. There could be many levers and factors around the payout ratio which the appreciation is beyond me.

It says here that it comes from manipulation but I’m no expert to comment.
https://www.thestar.com.my/news/nation/2025...-previous-years

You guys need to understand why they cannot pay out all of each year's dividident for conventional saving. The answer is the 2.5% guaranteed interest for starters. This creates a need for a buffer for a worst case scenario. The second answer is that EPF and its very purpose need relatively stable returns to provide some sort of calculability of the annual dividend for people who use the dividident for their retirement expenditure. It's simply put stupid if one year is 8 then next is 3 percent when you are retired unless the dividend far surpasses your needs (which will not be the case for >90% of EPF members).
Lastly: EPF also needs to cover operational expenditures.

Same applies for Shariah-Savings too just minus the 2.5% part.

All three aspects combined explain why the payouts are the way they are and that is a good thing.

You need to remind yourself that EPF money is simply put NOT an ETF or any sort of pure 100% undiluted direct investment like buying a share or whatever.

Also they dont rob anyone of "their" profits. If you think like that you are using the wrong vehicle for your money.

If you want something different, invest accordingly.

I would say this can be derived from the act for example Section 27 (3); Section 50 (2). And I am sure that the guarantee is a factor. As a pension fund things work a little different from an ETF. It's that simple. And there are many advantages of having the money in EPF instead of another investment outside the pure dividend too.

2.5% guarantee is from the EPF act.

Only if the EPF doesnt have the funds to pay the 2.5%, the goverment will step in and advance the funds to EPF. This advance has to be paid back by EPF "as soon as practicable".

Putting this down for future reference.



Source of data :-
https://www.kwsp.gov.my/en/w/epf-declares-6...anan-shariah-fn

EPF SOCIAL PROTECTION INSIGHT VOL 5 2021 - Appendix H
https://www.kwsp.gov.my/en/corporate/news-h...ts/publications

The State of the Nation: Putting old-age security within reach of Malaysians without public pension, RM1 mil savings - Cindy Yeap / The Edge Malaysia 06 Dec 2021
https://theedgemalaysia.com/article/state-n...pension-rm1-mil