I can sense your fear of money being "locked" after reaching 55yo by looking on your repetitive posting on the same issue past few days

OMG the 2.5% dividend issue still not settle yet 

for god sake, the min 2.5% is already there since donkey years ago.. I don't understand why now only it become such a big issue 

anyone who lives long enuf in malaysia can read "within the lines" la when a policy of such is announced. min 2,5%, so you be happy if they declare 5.9% for conventional vs I-KWSP gets 6.2% for no transparent accounting but merely its two seperate sets of payout required.

being penalized for not supporting islamic investment/product.

what's the difference with take ones monie to pay the other fellow.

wealth tranfer la nama-nya

bro, it wld be wise if you can read beyond that "min 2.5%", read further "the objective of such policy" being implemented

no cystal ball la.. cool

in blue, thats where is the "catch" for funds. i read towards the "objective&consequences" not merely the gula-gula (dividen payout)

anyway peace  just different views

The newspaper reports should have indicated in their reports that the 2.5% minimum has no difference from what was status quo, reported back in the 90's. The EPF should also highlight on this, as a legal practitioner, I would word my statements in ways that would not constitute misrepresentations and confusing siruations from arising.

It is the fault of the reporters and the EPF AND the minister who took and gave the press briefings.

Not everybody is like Cherroy who has sufficient knowledge on this.

Another way to look at it is that they are reminding us of this 2.5% again,.... because it may happen moving forqard. Perhaps gone re the days of the 6% and above dividend rates.

Look at Sgp's CPF rates. Well,................... off the record,... overheard a personal conversation between a Chinese dep minister in the Ministry of Finance and his aides at a function,...... very well-versed with Sgp affairs,... commented that it's not logical to give out 6+% for a national pension fund. Said if someone wants such high yields, he should go for other riskier investments.

Said a safe pension fund should yield lower than FD. I guessed it's just his personal opinion.

Edited by adding : So, can't depend on anyone, not even the Government for your retirement survivalhood,... better pickup investment knowledge as soon as possible.

THat's right, my friend,... I do have some amount in the EPF, and I would like this amount to continue earning dividends inside our safe EPF. Of course, I would prefer to top-up into this account if the dividends are still good moving forward, but if they change the rules and do not allow it anymore, I will top-up as much as I can in the next few years before I reach 55.

However, I wouldn't ant whatever I have inside the account to be locked-away from reach after I'm 55. I'd like to continue withdrawing the dividend for my pleasure activities in the country. I'll just let the principle remain inside without withdrawal, to continue earning the dividend.

Annnnnd,... if the dividend yield drops below 5.5%, I'll withdraw everything out and put onto that instrument that I have taregetted.

Hi Dan,... the only thing that troubles me is what sort of system will they use to administer this : let's say if they prohibit contributions after 55, but allow carry-overs, that means the system will track two ends of the funds, eg, if I have, say, RM50K carried-over after I attain 55yo, and then I contribute another 1K when I am 56yo, so the system will allow me to withdraw any amount up to RM50K, but will stop me from withdrawing the last RM1K until I reach 60yo ?

It will not be easy to program such a system.... will dividends be calculated based on all the RM51K, then the dividends for the RM50K carried-over can be withdrawn before 60yo, but dividends earned against the RM1K contributed is NOT allowed to be withdrawn before one attains 60yo. Wow,.....sound complicated to me,..............

Hansel,

I think you're like me right now. I contribute to my own EPF fund using my own fund, maxing out by to the limit (60k/year).  I don't intend to withdraw either even till past 55 unless my financial situation changes or I decided to retire early (before 60) or there are some major change in the EPF ruling. My intention of EPF is to use it for our (spouse and myself) future retirement or spending only in Malaysia - which are years down the road. I can't find any risk-free FD-like fund that can beat EPF at the moment, so putting money in EPF is ok with me.

Furthermore, with the low ringgit value this year, I got 15%-20% discount after converting to Ringgit to fund the account. 

Please be more transparent and tell Dan about the possibility of the fixed-price funds converting into variable-priced funds, and of the taxation matters pertaining to the funds that you have mentioned.

Secondly, I don't think the EPF can keep-up the above 6% dividend consistently year-after-year.

I guessed at the same when you were constructing the above post, I was writing-up my reply for Ramjade. Great,... you confirmed my points in my reply to Ramjade.

I am in agreement with you on your points. What that is making me nervous is that they did not specify clearly what the treatment is for 'leftovers' in our EPF account when there is no further contribution after 55.

Thank you, Cherroy,... your writing strengthens the conviction that my thinking and my actions are on the right track.

That's right,... conditions are attached to retirement, hence can still withdraw at the required age if fulfilled said conditions.

Whose scheme is better, huh ? Our EPF's or my CPF's ? Or each has its own merits ?

Sounds like u have insider info?

with epf liquidating their london property this year should still be fine...but who knows next years... now that they lost some of their future pound denominated incomes, better withdraw if possible. bank staffs that have dealing with govt depts all advise me to withdraw anything to do with govt, whether epf or tabung haji or amanah saham, they say too dangerous current situation. later got donation

looks like 75 is the max....b4 they classified it as unclaimed...

Unclaimed Contribution Information Criteria:
•Aged 75 years and above as at 31 December 2014 or birthdate is unknown
•Has balance in the account as at 31 December 2014
•No annual dividend withdrawal which is still active

http://www.kwsp.gov.my/portal/en/member/un...ormation-search

what about this sentence?...

Unclaimed Contribution Information Criteria:
•Aged 75 years and above as at 31 December 2014 or birthdate is unknown

so if what you have mentioned above is true.....
wondering if this "How about withdrawing rm1.00/year to make sure it's active so that they don't classify it as inactive by 75 years old?" worthwhile to do? 

EPF decent dividend payout has always been a thorn to those advocating investing in Unit Trust and the likes. Where to find such decent payout without risk to the capital. Hopefully it can be maintained in future, such that future retirees can enjoy their retirement peacefully.

It is a good habit - the money uses for non essential luxury expenses should come from the dividend from the previous accumulated earned dividends!