You guys talking about 2mil, 5mil or even 10mil for retirement....

But do you guys actually realized majority not even close to those numbers stated..... Wayyy off from it actually....

So what going happen on all that fall into this "hardcore poor" categories....??

Now, 1 mil in KWSP @ 6% will generate passive income of RM5k pm for a retired couple NOW to live on passively dividends.

40 yrs later how much does a couple need in KWSP to beable to hv the same RM5k of purchasing power as of now?

40 yrs later, maybe need 4mil in KWSP @ same 6% to generate RM20k pm so as to the same purchasing power of that RM5k NOW?

That target of RM5mil value may not be for NOW, but 40 yrs later. Ha ha ha.

from forummer wedchar2912 post 25541

"start 3.0K pm, increment 6.0% pa always, zero bonus, div 6% pa
at 60 yo, touched 2.7M"....
That is for
1 person Start working age 23, After 37yrs working.
Thus if 1 couple will hv 5.4M.

actually, its quite scary depending on inflation rate... 40 years is a long time for compounding...
if we assume inflation is 5% (using the chicken rice inflation rate from earlier example), 40 years means x 7 times.
so for the same 5K pm purchasing power (ie epf 1m), one would need 35K rm pm in 40 years. That just means EPF balance of 7million.

somemore chicken is controlled price item, and so is rice (since 1990 at least).... the 2 main ingredients....

cook your own chicken rice and the cost will be less than RM4 per plate

You guys talking about 2mil, 5mil or even 10mil for retirement....

But do you guys actually realized majority not even close to those numbers stated..... Wayyy off from it actually....

So what going happen on all that fall into this "hardcore poor" categories....??

Exactly. EPF itself is the one who planted the "magic million number" in everyone’s head. Before that, most people were just saving what they could, not obsessing over whether they hit RM1.3 mil or not. But once EPF came out with that target, suddenly it becomes the benchmark of a good retirement, with many targeting multiples of 1 millions.

the poorer categories??? oh, pls withdraw from account 3 and help yourself....

Guess they gonna live a short retirement life?

if inflation is 5%... and epf is 6%... what is the problem?

seems like y'all like to worry about nothing... create scenarios to have sleepless nights...

Spend 1%, keep 5% in epf, last forever, hehehe.

if inflation is 5%... and epf is 6%... what is the problem?

seems like y'all like to worry about nothing... create scenarios to have sleepless nights...

Its not a problem during the accumulation stage as the value of savings beat inflation.

It will.be a problem at retirement during the withdrawals. Because the inflation is compounding but the epf balance is no longer compounding (as the divdends are being withdrawn).

EPF initial intentions is good... To make sure we got enough for retirement.... But somehow it's like being manipulated & highjacked by certain people... Who keep saying you don't achieve more.... Need to pump more & more.... if not, You die lorh.... This one group...

Then another group... Keep saying don't keep money in EPF.... Save elsewhere or just spend @ YOLO all the way. Help the economy too.....

There are irresponsible politicians saying EPF will collapse so better take money out and spend or go to Genting?

If you already withdraw the dividend, what is there to compound?

Spend 1%, keep 5% in epf, last forever, hehehe.

Not solely blame in politicians only...

There's also irresponsible ordinary people around spreading fake information around....

Nothing

But iinflation compounds