This I need to agree...

All market would be effected each other.... No matter what...

Only good thing is foreign $$$ would gain from forex profit (if entry cost lower & exchange few years back)... Still some gain...

Many people in Malaysia always forget that EPF is retirement fund.  That the real issues.

Then keep complain why didn't perform well when others can give more...

Anyway
Since account 3 is live. Just use that $$ to invest in whatever assets you guys feel can outperform EPF 👌

average annualized KLCI index return since its inception in 1982 is at just 3.4% per year.

i seriously have a strong doubt EPF is going to perform better when the focus is shift into local equity......

Depends on age. I would say <35 years old, we can take more risk, hence, no point to waste bullet topping up EPF on our own. But >35, we should reach the stage where we need to have more allocation on safer investment, thus, topping up EPF will start to make sense, at least to me. At this stage of age, will most likely have the investment enough to be rolling on their own, so the additional capital will be for topping up retirement fund.

Usually your expenses, do you include the current mortgage or whatever loan installment or just the other expenses excluding these big ticket items?

Some might think it's same pool

But not me...

One is UT (even when it's like FD) whereas EPF is retirement fund (but some use it as investment vehicle or high interest CASA)

Both might invest in the same thing, but both have different investment strategies & exposures...

Also the size is different

actually im wrong.

i recalculate, assuming 1 million at 40, then next 25 years at the age of 65, considering average inflation at 2.5% per year, 1 million at 40 is equivalent to 1.85 million at 65.

That's my benchmark. I used like a BaristaFIRE calculation with no reduction in my expected cost of spending and for me to coast in 50yo, that should be my target.

It assumes even if we no longer earn a single cent of return, you can have around 120k or so to spend annually until you are 80.

Obviously if you use the 4% rule, you starting base can be lower but why not strive to save more rather than less?

So the returns should be worse..since 2021 onwards inflation is quite high. 2% quoted by gov tak boleh pakai la..

Hmmm, I wonder what background does he have in terms of fund management?

i know not everyone has crystal ball.... so what i know is EPF guarantees 2.5% dividend yearly right?

for our own financial planning, is it safe to assume that we can get around 5 or 5.5% dividend yearly?

what do you guys think will be a good retirement number to have in EPF account? 1.5mil? 1mil? 2mil?

can just use a low, realistic and safe withdrawal rate on pa basis on one's networth... for example, use 4% (this is the standard withdrawal rate by many who practices FIRE)... if one has 4 million, that means 160K per annum of spending.
That way, one just spend what one can afford based on one's actual networth of each year.
Personally, I prefer 2% as I am not old enough... if nothing else, back of envelop calc, my worth can last me 50 years... the inflation is already factored in if you think about it.

Noted the correction on the words guaranteed...

Given the KPi, 4% dividends should be very likely to continue as rolling Inflation is approx 1.5-2%, albeit it is not guaranteed..so an effective 2% return would be safe for epf future forecast planning ...say 4% dividends with 2% as annual inflation... to estimate how long the retirement nest will last given a certain withdrawal rate...

90pct of EPF members under 30 will not have RM240k to retire - KRI report

KRI said data of EPF members' contributions from 2019 to 2022 show that only the top ten per cent in the below 30 years of age category have more than RM35,000.

The top 10 per cent's average savings in 2022 was RM49,061.

According to EPF's estimation, an individual needs to have a minimum of RM35,000 by age 30 in order to achieve basic retirement savings of RM240,000 by age 55.

https://www.nst.com.my/business/corporate/2...tire-kri-report

Not only this, usually will assume people will continue working non-stop, but in real life i see many people lost their jobs, or resigned and be jobless for some time before they start working again. I have some Chinese friends who never have EPF, or only working as part timers, or monthly salary only 1k+ altho already 40+ yo. And also have Malay / Indian friends that keep changing jobs, and could be jobless for a few months. All these people have very low EPF saving, and i think Malaysia has lots of such people.

Yes, Only for financially savvy people. How many percentage is that?
Most would just go for the "safer" route.

Likewise as per MUM pointed out on those scenario.

But the Reddit conversation also mention that the KWSP officer also advise the nominee to be caution on any rules change hence it’s somewhat grey area. Don’t get caught out. Best is able to withdraw out and pump back into own EPF if no utilization requires and partially to external FD just so to mitigate whatever risk.

Huh??

If I read... Understand

EPF excepted??

Same with ASMx funds..

Those holding dividend paying stocks only.. especially Maybank stock 😁