https://theedgemalaysia.com/node/758299

I think the edge reads this thread and answers the questions we have haha

That is not EPF's job?

Their job is to make sure one has enough money to live out their retirement, thats all.

I don't want them to mess more with it weh.

I support UBI, but confirm I will get called a commie

Deswai should allow euthanasia as well. They are adults, they should have a right to determine their end. Not everyone wants to rot away in a hospital, or have poor quality of life due to illnesses or loneliness.

Generally it's only a authorised physician that is allowed, after a stringent test is met.

Netherlands allow it: https://en.wikipedia.org/wiki/Euthanasia_in_the_Netherlands

What kind of misinformation is this?

Majority of retirees are retired. Majority of them are not homeless or rotting in the streets, majority of them do not have to work until they are 80-90 like US.

Why everyone think retirement means you baller spend 100k a day?

It's more like some don't understand when you get access to EPF with RM1mil, it does not mean you get to spend RM1mil. It means its enough for you to continue most of your standard of living until you die.

But people see RM1mil, straight buy new car la, renovate house la, invest in scams la. Then cry no money.

I'm just tired of this push to blame EPF for someone not being able to retire, and how they are 'withholding' our money.

EPF is not responsible for our retirement, we are. EPF should not be your only source of retirement income, which is why financial literacy is important.

People have no issue when EPF force employers to contribute 12% of our salary each month, but somehow has issue when the condition of that is you can only withdraw it upon retirement.

Also, the maths checks out. If you earn like 3k at 24 and only have 2% increment until you retire at 60 with a salary of RM6k (which is not high), your EPF will be around RM1.36mil. Assuming 20 years left, that gives you an annual spend of around 5.6k a month. If you only earn RM6k when you are actively working, RM5.6k in retirement is not enough?

It is a good platform. You can't blame EPF on the lack of discipline and income stagnation of employees.

I said above, the maths and facts does not lie. If you earn 3k at 24 and only have 2% increment until you retire at 60 with a salary of RM6k (which is not high), your EPF will be around RM1.36mil. Assuming 20 years left, that gives you an annual spend of around 5.6k a month. If you only earn RM6k when you are actively working, RM5.6k in retirement is not enough?

But, that is provided you have the discipline to not touch EPF money and to work at upskilling yourself and your pay.

It's like saying US stock market is a bad platform for wealth generation because people lost money buying 23&Me shares. It's a good platform if one just buys the index and keep at it for years to come. Most people don't or can't.

It does not make the platform bad.

Ya, but I also ponder, withdraw to do what?

FD? Too low. Bonds? Uncertain. Stocks? It's a risk which I don't really need.

And all this has to beat the average return of 5.5-6%, so we are looking at return of 7-8% for it to make sense and worth the effort.

This scenario doesn't exist.

1. If he is thinking about retiring, the his money would not have been tied down and be hard to access. This is how people plan to FIRE, but looking to move money to someone more accessible and you plan your spending accordingly.

2. If he has passive income, then he can just stop contributing to EPF the moment he stop working and the income will go back into his liquidity usage.

3. I have never considered EPF as CASA even though I have more than enough of it, rather my liquidity comes in FD etc, so I doubt any 40 year old thinks about EPF as a CASA, especially when they barely meet the withdrawal criteria.

4. Let's assume he wants to retire at 40, with RM1mil in EPF (since he don't have enough to go past RM1.3mil), he would have done his calculation that he must survive retirement until 75yo with RM1mil (I will ignore the interest etc), that means he can only spend RM28k per year, or RM2.3k a month.

5. His Acc3 should have roughly 20k, which allows him to sustain for a good one year or so.

6. This would give him enough time to modify his passive income back to his income flow rather than EPF, make some changes to his illiquid assets etc.

7. If he can't find a way to muster up RM30k a year for his retirement (based on his EPF), then he is not ready to retire at 40.

I genuinely don't think many people view EPF as a HYSA. And for those who do, liquidity and ability to retire should not be an issue, given if they have access money to pump into EPF as when they like, they could just stop doing that and put in KDI or some FD instead?

I can only find data that out of all the contributors in EPF, only 130k people have RM1mil or more while no indication of the person being active or inactive. Given they have like 16mil total members, this like 1-2%.

I rather debate and ponder this than what income a finance blog brings in

Sorry, very hard to quote given how you reponded.

This scenario doesn't exist.

i dont know how you guys missed all his writings in here... hmm.gif



So, he has enough to retire given he has calculated his expenses? Has EPF officially banned withdrawal post RM1mil? No right? It's gonna be effective in 3 years time. IF the person sohai still go put it in, after being given 3 years to plan, like I say, this is some fantasy you created.

Else just ask him to PM me, I'll coach him how to do his financial planning for free.




I don't understand this. He pumps into EPF, if he don't have RM1mil now, he can't withdraw regardless of the rule. If he has more than RM1mil, he shouldn't have any issue meeting the RM1.3mil threshold. And if he is worried that 3 years down the line, he needs the money, then he can you know, stop adding more money in.



I don't get it. If he has way above RM1mil, what is exactly the problem? He can still withdraw any excess that he has. And I repeat, he has 3 years to plan this all.


You said he put in access cash into EPF, now you cay its ngam ngam enough. Enough for what exactly? The variance year on year from now to the max cap is 3 years, with RM100k additional cap a year. So, now is RM1mil, then 1.1m and so so on forth. So the issue is the additional 100k that is locked up. Assuming a 5.5% return, its RM5.5k a year. You can get around 4% in FD, so you get RM4k a year. The difference is RM1.5k.

Someone that can pump in 100k a year to EPF, somehow can't manage a difference of RM1.5k?


If he has few million, then there is no issue? The capping is RM1.3mil. If he has RM2mil, he can have at the minimum 700k to withdraw. If he needs 700k a year, then how is he retiring at 40 with that amount in EPF?

Like I say, this is a fake scenario. I won't say I'm rich, but I have more than the mil required. I've never



You started your scenario by saying the person wants to retire by 40, and its hard when they can't use the money since the cap is raised to RM1.3mil, which then I assume the variance of RM300k is the issue. Now the scenario becomes he has too much money?

I'm re-reading it, I'm not sure if you got it correct. the RM1.3mil does not mean EPF money can't go above RM1.3mil, it means the person cannot withdraw if its less than RM1.3mil, if they have RM1.4mil, they can use withdraw 100k.



No wrong, but EPF rules are quite clear and has been quite transparent, so if one does not understand the rule, they can't blame the game. EPF now is moving the withdrawal threshold from RM1mil to 1.3mil. If the person really needs the RM300k, then they should not pump the extra into EPF lo. If they already have more than RM1.3mil, then they can.\

Simple.

Ya, which is why I keep saying, this is a fake scenario. You say he uses EPF money now. Okay, which means he has more than RM1mil in his account. He is worried about the increase to 1.3mil. Okay, but this will only happen in 2028. So if he's worried, then he can just stop doing that?

Bro, you said he has too much money, too many millions, but somehow he is worried about EPF changing from RM1mil to RM1.3mil?

Like I said, ask your friend don't worry. Ask him to PM me, I'll teach him financial planning given he sucks at it despite having big money.

Again, given this thread has roughly over 20k replied, I will assume there are at least 5k people viewing and posting here. If that is the case, there should be no issue for me to issue a challenge here. I just want 10 people here that has more than RM1mil in EPF, that is 45yo and has millions more overseas but scare they can't retire because EPF now increasing the withdrawal to RM1.3mil, in 2028.

Which I want to repeat, is 3 more years away.

Easy right?

For someone will millions? Yes.



This is your comment.

So someone with few million is scared crazy over RM300k adjustment period that will only happen in 2028?

Just ask him to message me, I'll help him through this so he won't go crazy.

First step to fully annuity like how SG does it.

You intro as an option, then you slowly remove the alternative.

They just need to raise the sum. Since now RM1mil to 1.3mil, then just up it to 1.5, 2mil, etc...

Is okay la, I don't feel our kids owe us anything, given we are the ones that bought them to this world.

In fact, I think we owe it to them to maximise their experience they best we can, which is what I am trying to do.

I would like them to have enough that they can pursue something they love, rather that something they can make money from.

Means shouldn't declare high dividend else people won't stop asking for more every year.