PSA:
Reminder. Starting next month, EPF's threshold for the >RM1m Savings Withdrawal will be revised upward to RM1.1m.

If this affects your planning or you are considering any adjustments, still have the rest of the month to think it through and make changes before 31 Dec 2025. Good to be aware so one don’t get caught by surprise.

Yeah... It really depends on each person's (or family's) own situation... no one-size-fits-all simplistic answer here.

At least remind all of the upcoming change. If it affects anyone reading, still have a month to think it over and take whatever action makes sense for your own plan.
(your recommendations tally with my view too... )

remember there was that story like last year about a 35 years old lady having 2m in her EPF.

i just don't remember the full details of her story... but assuming she started working at like 21 to 23, she could have accumulated 1m in epf when she was at 30 to 32.

What you described was actually one of my earlier plans too. Luckily, still plenty of time to rethink and restructure before the time to execute.

Already ran the numbers:
Start at age 14, contribute 100K a year, assume 6% div... by age 22 balance hits 1m ... the young adult could enjoy 5K pm extra “pocket money” (or simply reinvest it).

With the new 1.3m limit, no big deal.. qualify by age 23/24 anyway.
And 1.3 × 6% / 12 = 6.5K pm of passive cashflow.

But by then, quite sure RIA will reset the threshold and it ain't 1.3m anymore... what is it? who knows.

Now layer on all the other possible policy shifts:

a) “pension-like cashflow” structure,
b) “no withdrawal until age 70”,
c) “tiering system”…
and so on. We can all imagine where this may go. Nothing is cast in stone... even if it was, any incumbent gov can just change it with a waive.

Good news is some claim these changes won’t affect us/me here... some are already quite old, some already planned to withdraw everything, some kept EPF as a small fraction of total net worth, etc. any here no money at all in EPF hence it won't affect him/her? lol

But as a prudent parent/elder, I still like to think ahead for the next generation.
Plenty of time to ponder… but also plenty of moving parts to navigate.

like you, I never lost confidence....

in fact, I am highly confident.... that EPF rules will change yet again in next 10 years...
hence, can never put all eggs in 1 basket.

whatever deposited into epf in a particular month, will just get 1 day div worth for that particular month... (div for all months moving forward will accrue full days of the month)

we are of similar view...

i drastically reduced my myr exposure to like 20%...
(I still depend on epf and my banking stocks in malaysia for div/spending money)

Nonetheless, I am of the view ringgit will be fine... but the uncertainty is definitely there... too many changes. and lack of investment oppurtunities that suits me.
(also works as a hedge/counter to PMX's request to EPF to increase weightage of investment in Malaysia and reduce overseas exposure)

same same with epf accounts it seems you can do so... just the upload to their epf is subjected to 100K rm.

I guess this is why some asked how come EPF don't provide a facility to directly transfer from say Parent account to Dependent's account.

Who knows... Some of these kids are already millionaires.
Cos many parents planned their spending budget to have their wealth lasts past death.

Some already usd millionaires and didn't realize too...

Epf is just one of the free publicly available financial tool to safeguard and expedite the transfer of wealth.
Trust funds too expensive and suboptimal for many.

This post has been edited by Wedchar2912: Dec 3 2025, 04:01 PM

Yay. Maybe can offer ewallet facilities like payment etc. Hehe.

as much as I like to agree....

unfortunately, thanks to our gov for allowing so many different ways to withdraw money from KWSP, which incidentally stands for Kumpulan Wang Simpanan Pekerja.... Or EPF, the old name. Employee Provident Funds.
until majority thinks KWSP is just a regular savings account...

retirement...? many B40 laughing. TQ gov for account 2 and account 3...

not enough money, once a while, will get 500rm injected... confused the hell out of me.

This post has been edited by Wedchar2912: Dec 3 2025, 09:38 PM

no need to say so much... try removing account 3 and you see what happens...

Try that first... I 101% support removing this. Remove Account 2 also if can.


btw, I always wondered... so many kept on saying EPF money is for retirement, and yet the same will say its ok for housing or medical etc. if want to, be strict about it all...

you are referring to employee's deduction via salary rite?

technically the limit is 100%, but subject to being positive cashflow still to the employees (should be same for all employers... else every month employee have to pay HR... lol).

back when I was working, the highest I ever elected was above 50%.

technically not all EPF money is tax free...

only the first 4K or so every year right?

once inside, yeah, it compounds tax free.... and hopefully remain so until end of time.

haha... so now we are back to sticking with the current rules and policies? lol

To be honest, I’m genuinely looking forward to seeing whether EPF actually implements the full withdrawal freeze until age 75 as “hinted” in the media and “recommended” by the World Bank. If that really happens, it would certainly ensure that the entire B40, all of the M40, and 19 out of the 20 tiers of the T20 won’t end up being a burden to the top 1% tier of the T20. After all, if the government believes the T01 needs babysitting, then surely the other 99% should not be touching their EPF either, right?

Criticising questionable policies is normal. In fact, expected. Especially from those who will be affected. Saying others are “making a big fuss” comes across a bit like trying to shut down valid concerns… don’t you think?
(what is unsual is me taking the side of majority of people, when all these policies clearly no longer impact me personally ... my decendants yes)

Anyway, this is a public forum. We’re all just sharing views. It’s not as if EPF is reading what we write here.

hehe yeap yeap....

so far... touch wood... I had no chance to test this plan also cos lhdn didn't ask me to show proof to spending money source... thank god....
but if say suddenly go spend cash to get a car costing 400 or 500K rm, don't know this EPF excuse can work or not also.

like what magika said, do take note of the difference between employee's and employer's contribution....


if what you really meant is Employer's contribution (the word with er), I only know half the story and hence don't take fully my word.
The employer's contribution should be standard across the board for all employees... from clerk level to ceo.
I really don't think it is that easy, for whatever reason, to have a special deal just for one employee where his employER's portion is special at 19%, when even CEO and CEO one downs all at standard 12%.

You get what I mean?

having said all these... i heard that some firms nowadays are so generous that they give 16% standard for all employees. You may have better luck looking for these firms than nego personal special rate...

also can guarantee if this tax benefit is created... so many from B40 to M40 or even bottom 15 of T20 will make so so much noise.
that will impact GE and popularity of current gov.

Plus Gov will lose decent amout of tax collection, cos for the T01 to T05, the 100K deduction will cost gov the top income tax bracket rates... ie 25% type.
eg: if say 10K persons max up 100K contribution, that is 250m revenue

will just benefit top execs of firms mostly

Fully agree.

But you know la, that’s not really human nature. Many people, including quite a few forumers here, tend to get red-eyed when they see others doing better or getting better outcomes. Then the jealousy and anger kick in, and suddenly everything is called “abuse”.

What “abuse” exactly, I also don’t quite get, because EPF sets the rules, not the members.

Everyone had the same framework and could choose to contribute more or less depending on their own situation. At the end of the day, people just made different trade-offs... And just move on more important issues like refocus on family time or on income activities, or balance both.

Then you have the type. A lot of people tend to confuse discussion or disagreement with complaining, simply because of their own viewpoints and biases. It happens more often than we like to admit.

I'm a believer in both EPF and overseas investments, though these days my portfolio is tilted way more towards overseas assets.

That said, for this particular year, sgd dividends looks poor once translated back to ringgit: ringgit has strengthened by roughly 4% (from around 3.29X to 3.17X), so returns get compressed. For example, SG bank stocks may yield 5% in div, but the effective ringgit return is closer to 1%. In comparison, EPF's expected 6% dividend looks much more compelling.

On taxation, I'm aligned with nexona88’s view: in that EPF is simply way cleaner. EPF statement provides a clear, straightforward paper trail for lhdn, which makes compliance much easier. lhdn can't even challenge anything.