wait... are you assuming that the chap with 2mil in epf at age 40 only has that 2 mil in epf and no other assets or can no longer work anymore?

ok lar... in 1990, chicken rice is like 2rm???
now, 2025, chicken rice is like 10rm???
5 times over 35 years is an inflation of 4.7%

so if in 1990, every month can get 2K rm to spend, now is 10K rm.... still ok rite?

in another 35 years (2060), chicken rice reach 50rm.... monthly spending is 50K rm...
hopefully offcial retirement age don't reach 80 only.... lol

I'm a bit surprised that back in 1990 chicken rice was 3rm. Was that in KL back then?... cos i remember paying only 2 rm for a plate near my primary school to eat.

Then again, agree with you.... I can get a plate for 6rm here now... i just used PJ/KL standard price, which is around 10rm.

3rm to 6rm price change... now that is low inflation after 35 years... lol
hence 2K pm in 1990 to 4K pm 2025... ok right based on this confusing stats???

Exactly. EPF itself is the one who planted the "magic million number" in everyone’s head. Before that, most people were just saving what they could, not obsessing over whether they hit RM1.3 mil or not. But once EPF came out with that target, suddenly it becomes the benchmark of a good retirement, with many targeting multiples of 1 millions.

the poorer categories??? oh, pls withdraw from account 3 and help yourself....

actually, its quite scary depending on inflation rate... 40 years is a long time for compounding...
if we assume inflation is 5% (using the chicken rice inflation rate from earlier example), 40 years means x 7 times.
so for the same 5K pm purchasing power (ie epf 1m), one would need 35K rm pm in 40 years. That just means EPF balance of 7million.

somemore chicken is controlled price item, and so is rice (since 1990 at least).... the 2 main ingredients....

in 40 years, I don't think I can eat much chicken rice anymore.... so most probably 2 person share a small plate.... much cheaper... lol

Its just that some don't understand how inflation works. Lol.



This post has been edited by Wedchar2912: Oct 3 2025, 09:41 AM

How come suddenly concerned about this 1.3M threshold? Shouldn't really affect you much already since you're a few years from 55, right? (gam gam 55 in 2028?)

For those of us still "too young" (below 50), your earlier point is the real takeaway: adapt... adapt... adapt... Time to relook at retirement planning, cashflow needs, and whether topping up EPF is worth it if the goalposts can shift anytime.

Also, for context: the RIA framework is pegged to 2023/2024 data, and EPF already said it'll be reviewed every three years. Does anyone here seriously think that by 2028 the cost of living will remain the same as 2023/24? As if inflation suddenly stops? Even using something as basic as my earlier chicken rice index at ~5% p.a., 1.3m rm today becomes 1.6m in 2028 (rounded up from 1.586m). And the RIA begins again...

So yes, “RIA” is a nice acronym... a moving number. No wonder EPF RIA lar... lol

(for those above 40, the bigger risk isn’t this threshold at all — it’s whether EPF decides to "align" with a future retirement age of 65. If that happens, don’t be shocked if 55/60 withdrawal ages quietly get shifted up too.)

Yeah lor… if rules can shift like this, best not to overcommit.

I’ll likely trim down my EPF exposure further… 55/60 (assuming no change for next 15 years) is just a bit too far for my comfort.
Moving forward, I may just treat EPF as a forced fixed-income instrument I kena converted into... and no longer part of my financial tools.

hah... it is the 8th wonder..... that means I can continue eating the meat of the cow that ate grain i/o grass and epf still reach 5m when I touch 60.

This is what you’d call a smartly calibrated move...
Affects only future new members... who are not current voters.
The present crowd gets options and stay contended... not caring much abt the new members...

Clever... very clever
Subtle... almost artful

Both perspectives and advices have their merits. It really comes down to each individual's situation, especially age and available alternatives.

For those of us still some distance away from 50, it’s probably wiser to lean toward the more flexible approach. EPF's rules have shown that they can shift, and when the goalposts move, so should we.

Personally, it doesn’t make much sense to leave say an extra 1m parked in EPF for like the next 15 years before 55, fully exposed to policy tweaks, all for a 6% pa. There are plenty of other investments that can match or exceed that, with way better control and liquidity.

For those nearer to 55 (or already past 60), the story is different. At that stage, the compounding has done its job and you have earned the compounded fruits of your effort. Now it’s more about enjoying them and managing the cashflow wisely.
But like all advices, its easier said... if I were around 60, I would still relook into my cashflow plans.. goalposts had been shifted, again and again.


(future members... best advice is just live with it... too bad... )

This post has been edited by Wedchar2912: Oct 9 2025, 01:29 PM

Since you mentioned you are a noob, I just advice caution above all... And take things slow.
It's like if you have never gone to the gym, best to lift small weights first.

May I suggest that you search and read what bro RamJade wrote in great details in the FIRE and other financial threads. A great read to start things off. Take your time....

(credit to Ramjade for his willingness to detail much of the process. But that doesn't mean readers should just blindly follow. Investing is both science and art, blended according to each needs)

This post has been edited by Wedchar2912: Oct 9 2025, 04:13 PM

... wisdom is in keeping silent....

how else to repeat the same old story that majority of members are too poor and don't have enough to retire... and hence the need for EPF to better baby sit everyone.... lol

would have preferred 6.0% div... cos its easier to calculate the div one can spend for next year...
but 5.5% div is also fine depending on how the market ends in Dec... as long as EPF don't keep silly amount of reserve

If EPF truly pays out 97% to 99% of what it earns, then all is fair. whatever the annual dividend turns out to be, we just accept it. Hard (edit: fix spelling) to criticise if that’s the model.
What I find odd is that some folks are completely fine with EPF keeping like 10% reserve, yet if a stable NAV money market fund (mmf that is always priced as 1 dollar) do the the same 10% reserve of its profits for future growth, these same people would raise hell.

As of mid-October, signals are looking good: S&P 500 is up like 8%, the Nasdaq Composite like 17%. Our ringgit interest rates are trending down also... (so should the div not be more than last year's 6.3%???)

So for the kinds of assets EPF can invest in — what exactly is “really down” this year?

This post has been edited by Wedchar2912: Oct 18 2025, 03:22 PM

Q4 is the best ride... just last week Friday we already witness the power of a tweet/tandrum.... followed by taco bell ringing. lol

lets hope this weekend got many fdi signings to the benefit of Malaysia... and not the other way around where we invest a lot in usa to maga.

0.1% extra is still extra... for every 1 million, that's a nice 1K rm... can take that extra and donate to charity of one's choosing also better than epf keep in reserve.

This post has been edited by Wedchar2912: Oct 24 2025, 12:53 PM

the confusion is from whether one is refering to active only members vs all members...

90K would be the active members (which includes those working or just self-contribution also)

the larger 130K would be all members, and hence benchmarked to the full 16 odd million members.