Great decision. In Ringgit Malaysia space, EPF still provides one of the best risk-reward return with explicit guarantee of 2.5% return by Malaysia Government.

If working overseas in a much higher cost of living locale, putting 60K ringgit per year is doable. Can even pretend that it didn't happen. :-)

It is really up to the Government of the day, ie the PM and FM. The government can override any rate recommended by EPF.

Having said that (a bit cynical with the above statement), given what we know how the markets been performing until today 26 of May, and that PN government would want to remain popular, I would say your guess is very fair. Can even aim higher at 5.5 to 5.99%. MGS/GII been holding so well that they are capital gains, while our Bursa shares has rebounded nicely. All thanks to BNM's rate cut.

A wild thought. Maybe EPF should give bonus dividend like extra 3% on top of what they normally declare, and state that this bonus dividend must be distributed and spent. Help spur the economy somemore.

In the interest (pun intended ), in order to stimulate the economy, one cannot keep the money in EPF account but must spend the bonus dividend. Maybe throw the money into respective contributor's e-wallets run by companies that Epf has a stake in, and put restrictions that the money must be spent on certain purchases, medicine, or donations to charities. It is purely to stimulate the economy.

haha... that is the beauty of my wild proposal. The condition is that the bonus dividend must be spent, and so everyone can take the bonus dividend and spend... via e-wallets???

Then again, you are right. For those super high T20 (I call them T01) say some CEO or former CEO of a bank (hint hint), if they have say 10 million ringgit in EPF and the bonus dividend is 3%, they will get 300K ringgit to spend.
Headache for them... a cheap beemer is too "low class" for them to buy.

who has the most money in epf? the rich and powerful... and influential also. i doubt this can be done.

plus, since when Malaysia becoming a socialist country?
(there are better ways to help the bottom 40, like universal basic income like 400rm per month per pax. Covid 19 shows us that Government definitely can afford this).

the assets close to RM1tril is basically the reserves that EPF never pass to members, with the reasoning that EPF has not realized yet the gains and smooth out the dividend yield/saving for a rainy day.

IMO, it is basically robbing peter to pay paul scenario. One doesn't live forever and once one takes out everything, the excess reserve belongs to someone else.

the assets belonging to the EPF millionaires only make up 12% of total assets.
so dropping 1% dividend return of these millionaires will only increase the return of the rest by 0.1% thereaabout. So will 0.3% return for the rest of members be a life changing enough? (i assume take 3% absolute return from these EPF millionaires to redistribute to the rest).

the original politician who suggested this basically not telling the truth. And it will not work.
(same thing as taking from the 20% of the population to help the 70% will not work. Thats why inverse pyramid scheme does not last)

It is certainly weird that you don't understand that Epf contribution is mandatory, while ASB investment is voluntary.

How about setting the tiering at 60K rm level and people like you only receive 2.5% pa while those with lesser than 60K rm in epf gets say 10%pa?

Playing devil's advocate.

firstly, tiering is basically robbing Peter to pay Paul. EPF is a defined contribution retirement scheme and the assets inside belongs to the members. To assign tiering is basically just that.

If you think my number is random, it is not. At least it is designed to help the majority. The average amount mentioned repeatedly by media is about 60K rm per pax, so just help the bottom 50%.
But it sure hurts those who are above the average right?

Your suggestion basically means you already bought the government's propaganda.
We all should think critically about information provided by government. The said minimum saving by age was created out of half baked thin air and most probably propagated to suit some agenda. What is stopping some smart alec to just change the number to some arbitrary new tier? This is the part that got many hardworking contributors annoyed. I believe that many of us would support proper "socialist" moves to help the less fortunate, but not using EPF. Already we have taxes and other social programs that do or aim to do that.

(ps: if you believe RM 240K is some golden number, don't. Each person's financials are different, and a single doesn't mean anything with proper context)

So? Did anyone force them to invest in ASB? ASB actually do not want any more funds for those above their limit.

EPF contribution is forced as long as you are earning "regular" income. If EPF doesn't want any more funds above their predefined limit, then ask government to stop new contributions for those above the limit. Then you will see the real effects.

How is it that it comes back to race question again? EPF members are those who earn active regular income regardless of race and there is no choice in this matter. But if you want to play the race game, I would expect there are more Malay members than say Indian members by virtue of our population makeup.

ASB members are those who voluntarily contribute.

definitely 2021 dividend (to be declared sometime feb 2022) will be higher than 5%. I am hoping closer to 6%.

got chance then.... since BN won convincingly in Melaka.

Above 6% pls.

Disagree with RM1mil. It should be the first 50K rm gets say much higher return. Anything above 50K rm should just get 2.5%. Not happy, take the funds and leave Malaysia.

Then the oldies are some other country's problem.



This post has been edited by Wedchar2912: Dec 23 2021, 10:39 PM

This is a form of tyranny of the majority. I have issue with the mandatory plan proposed here.
Why are the few responsible (or if you like, lucky) members who manages their financial well need to be bounded by the actions of the majority?


It is like drinking alcohol and smoking is bad. why not ban that in whole malaysia? oh wait....

Or eating too much sugar is bad for health, so no desserts everyone....

I hope you realize that I am being sarcastic....

But isn't that what Malaysia is behaving? its not about being fair... look at politics, religion, money, crime.... eg: politicians don't have to pay taxes for example.

no way.... gov already actively pushing everyone away.... even retirees... pls spend your foreign earned income elsewhere tax free.

Some of us agree with your statement about CPF, same as how we agree that EPF is the contributors money.

But CPF is a Singapore retirement scheme. It is up to the Singaporeans to make a change and influence their obedient citizens to make a change. Problem is the Singaporean citizen have had it good for them since their independence, and hence the SG government now has too much authority to do anything they want.

If our government truly wish to help the elderly, a better method would be to create a universal basic income scheme of some kind. Say all who is above 60 years old will receive RM 1,000 per month until their death. We know Malaysia government can afford to do so.



This post has been edited by Wedchar2912: Dec 25 2021, 01:32 PM