Won’t crash that fast because they can be more nimble and take faster action to take advantage of the markets 🤦‍♀️

Tiering has to be set based on wages ceiling like CPF does

Dude, do you really read what other people told you? KWSP did mention the 60k limit was due to taking into money laundering's consideration. But yet you are keep saying it is nothing about money laundering? It is really tough to communicate with you.

...
EPF CIO has said already money withdrawal is not issue 🤦‍♀️

...

The latest articled shared by someone mentioned 6.67 million employees have less than 10K.

You don't need to set the limit to be as high as 1mil, just setting it 20k or even as high as 100k will do, 6-10million or more people will be benefited.

Ok, let's say 100k will be enough to help lots of people, and your EPF amount is more than 100k which you will get lesser dividen % while those below 100k will get a far higher %, are you still Ok to have this tiered dividen? I ask this question cos i suspect you are "OK" with it due to you are not affected now. While you will be affected immediately, i wanna know if you will still say OK? Honestly.

Actually my salary is capped. That's why I tell you I am kuli.

Earning risk free hundred thousands per year is not abusing the system? How is that not abusing the system?
That's is not abusing the system cause you are putting your money at risk. That's the price you pay.

For me I don't care about EPF much and it will never be my go to for retirement as all my retirement funds are overseas. If I can withdraw my EPF today I will do it in a heart beat and dump them overseas.

For me I feel RM100k is a bit low for Malaysians cause if you are earning RM3-8k (average Malaysian salary) you will hit RM100k. There's no doubt about it provided one never touch the EPF. But majority of people cannot reach RM1m in EPF on a RM3-8k salary unless they are high earners. I agree to help B40, M40 but not those T20 or T10 category. M40 more as govt hardly helps M40 and keep squeezing the M40. If RM100k I will not agree as majority of people won't be help. Heck maybe if don't want limit at RM1m, maybe RM500k onwards.

Er, not about you force to put money in. My point is those who use EPF as alternative to FD. If you already have a RM1m inside you can withdraw from EPF anytime if I am not wrong.

So basically if you already have RM1m, you can withdrawal the excess anytime. So technically you are not forced for salary deduction as you can just withdraw it out.

Here goes. Assuming EPF contribution for someone earning RM3000, EPF contribution by person is at RM300/month with employer contributing RM300 also = Rm600/month, EPF returns at 5%p.a and the person will be working for 30 years. At the end of 30 years, that person only have
RM480,952.87. No where near RM500k also.

Even if salary is RM5k with monthly contribution of RM500 + employer contribution of RM500 = RM1k/month, unable to reach RM1m in 30 years time.

Try it yourself.
https://www.investor.gov/financial-tools-ca...rest-calculator

Why RM1m? Cause based off the calculations I showed you RM1m is a number not many can reach. RM100k is a number everyone can reach.

It won't solve everything. But it will help them to have more cash upon retirment. Er I am not talking about a 1% increase in dividend. I am talking about extra 50%. Example if current rate is 5%p.a, those below RM1m should get 7.5%p.a while those with RM1m above gets 2.5%p.a

Actually part of my aim when I retire would be help out at soup kitchen and dogs shelter. So yeah that's where my money will go to. If I can reach that level. But those are just dreams.

It's somewhere buried in earlier posts in this thread. I don't have the article, but I kept this picture for my reference.

For the fun of calculation, if the savings is >1M , take out 1% from it.
= (111,766,010,989+4,341,534,600)x1%
= 1,161,075,455.89
= 1.16B

In order for those below 1M to get extra 1%, it requires 8.2B
= (7,871,199,747+11,071,241,468+110,159,987,097+134,065,438,179+436,846,447,535+120,134,203,132)x1%
= 8,201,485,171.58
= 8.2B

^^ Definitely not enough, so perhaps the suggestion to set the limit at 100k or 200k is the right number.
Bear in mind the numbers below are from 2020 and many have withdraw hence it needs to drag the number nearer to 100k rather than 200k.

Re-calc below for the cut-off at 500k
= (120,134,203,132+111,766,010,989+4,341,534,600)x1%
= 2,362,417,487.21
= only 2.36B deducted

= (7,871,199,747+11,071,241,468+110,159,987,097+134,065,438,179+436,846,447,535)x1%
= 7,000,143,140.26
= requires 7.2B

^^ still not enough to cover.

Re-calc below for the cut-off at 100k
= (436,846,447,535+120,134,203,132+111,766,010,989+4,341,534,600)x1%
= 6,730,881,962.56
= 6.7B deducted

= (7,871,199,747+11,071,241,468+110,159,987,097+134,065,438,179)x1%
= 2,631,678,664.91
= 2.6B required

^^ ok, enough to cover. So 100k limit it is !

[attachmentid=11405473]

Well let's put it this way. Higher FD and and cheaper interest rate on loans for those with priority banking. Now you don't hear those HNWI complaining. Its fair. Lower EPF returns with amount above RM1m and get access to cheaper loans and higher FDs.

Yes.

Rm8280 EPF for a Rm3k per month salary for 35 years without increment gives Rm793,524 after 35 years @5% yield pa

https://www.calculator.net/investment-calcu...tit=0&x=74&y=25

I just went to use the calculator. I put in 0 investment and every month put 1k with 5% interest for 30 years. Go and do it and look at the money you get after 30 years. Almost 800k already. That's only 1k per month for 30 years. It's not that hard.

Another perspective. You just need to sell something that earn you rm10 per sale and only need 100k sales to get a million. You just need 274 sales a day for one year (365 days) to get more than 1 million. If you say earn rm10 too much.. then rm1 for 10 years la. 274 too much then 137 a day can? Rm1 earning, 137 sales for 20 years. Sell burger also can become millionaire easily if you work hard. And this is only purely sales. Not yet investment or compounding.

Avoid shariah account. Their returns have been poor Vs conventional account.

....

No worries 😀
I agree with you as the RM has been depreciating since it is free floated hence will unlikely go below to 3.5 for now unless Malaysia has improved its credit rating to at least A 🤦‍♀️
Because of the contracts is not compliant to musharakah or mudharabah

In essence when Shariah accounts invest in MGS it is already broken the Islamic contracts 🤦‍♀️

The only way to fix it is that Shariah has to be invested in Malaysia Govt Sukuks which is non existent and not appealing to the broader markets for fixed income portion

Malaysia Retirement Reforms Required.

I wud propose they include the EPF forum seniors into select committee.

Compliance
Bro Prophetjul, Magika,  Wedchar,  MUM

Overseas Exposure
Ramjade, Xander, Cubalagi, MGM.

Open for other deserving nominees. National Service and/or Fair Market Compensation.

Some politician spreading rumors EPF will go bankrupt and some people did rush to withdraw their money. Irresponsible politicians.

Some like Rafizi even says EPF should not increase investment in USA. I suppose he think EPF investing in Kampung better.

https://www.malaysiakini.com/news/395286

How about tax evaders? Nobody seem to pity the salaried workers who can't evade tax.