Any plans by lhdh to increase tax relief for voluntary contribution? Current 4k + 3k only. Should allow up to 100k pa limit. Sure will increase contributions.

Only those that have that 100k to put will benefits it.
Then it would be sort of similar to luxury items purchases. Only those that have money can get to enjoy that tax relief.

Current Govt are cutting Govt induced benefits for that group of people......so i dont think they will hv any plan to give tax relief to that 100k self contributions

also can guarantee if this tax benefit is created... so many from B40 to M40 or even bottom 15 of T20 will make so so much noise.
that will impact GE and popularity of current gov.

Plus Gov will lose decent amout of tax collection, cos for the T01 to T05, the 100K deduction will cost gov the top income tax bracket rates... ie 25% type.
eg: if say 10K persons max up 100K contribution, that is 250m revenue

will just benefit top execs of firms mostly

Account 1 already 75% of contribution. Goalposts of moving retirement age is now in discussion. Your solution is faulty. Any more idea as all doors are now closed

Fully agree.

But you know la, that’s not really human nature. Many people, including quite a few forumers here, tend to get red-eyed when they see others doing better or getting better outcomes. Then the jealousy and anger kick in, and suddenly everything is called “abuse”.

What “abuse” exactly, I also don’t quite get, because EPF sets the rules, not the members.

Everyone had the same framework and could choose to contribute more or less depending on their own situation. At the end of the day, people just made different trade-offs... And just move on more important issues like refocus on family time or on income activities, or balance both.

Then you have the type. A lot of people tend to confuse discussion or disagreement with complaining, simply because of their own viewpoints and biases. It happens more often than we like to admit.

You made it so clear as the sky

Many are still in delusional Dreamland, thinking about how their retirement savings going to make their retirement life better.

They didn't realise that the price of double storey terrace landed house already above RM 1mil

Retirement cost is going (already climbed) to climb beyond the returns given by EPF. Only some still believe the fancy CPI number given by raw basket of goods

Ringgit appreciated 8% against USD this year . FX Losses is going to dominate EPF dividend this year

This post has been edited by boyboycute: Yesterday, 01:11 PM

Then, it just means, that those that has double stories terrace with sure have 1 mil already.
After retirement, dont really needed that double stories terrace to stay.
At retirement why hv to spend so much time doing house cleaning and maintenance of that 6000 sq ft terrace.
They can downgrade to make life easier

Those that don't hv that 1 million double stories terrace will still hv alot to spend if they hv enough in kwsp.
If one do the maths right and spend correctly, just a 600k in kwsp will last a long time, much longer if they plan to just leave 50k or less as legacy and coffin money.

At retirement age, i believes the main serious inflationary item to take note of is the cost of medical insurance premiums. But that too would not be a problem if one did the maths in advance and have enough before calling it quit and retire.

This post has been edited by MUM: Yesterday, 02:06 PM

If you run a scenario analysis and compare Person A who saved diligently into EPF from 2000 until 2025, max out his RM60k voluntary contributions VS Person B who earned the same amount but invest his savings into buying up landed double storey terrace house, who will be richer today?
Assume Person B is a small business owner who didn't need to contribute into EPF at all and earned the same salary as Person A.
Doing the similar thing today expecting different results is insanity

Unker know a lot of Person B. They didn't trust giving money to others to invest. They just stuck to plain vanilla investment which was buying up houses in their own neighborhood. They don't need permission from "Father mother" to take out their money. They just refinance their properties

This post has been edited by boyboycute: Yesterday, 04:18 PM

EPF dividends doesn’t beat inflation in the 1st place because the inflation number is not stagnant but rising 🤦‍♀️ hence in absolute value it’s still eroding your money but less erosion as compared to your bank savings account

Hence do you know why EPF can calculate and payout dividends because it age old robbing Paul paying Peter scheme

If EPF would have been prudent they would have already have at least 10% in gold since back in the 60s yet instead buying MGS just to prop the govt 🤦‍♀️

Don’t mention double storey even these days single storey already breach rm800k which beyond the means many M40 barring any huge commitments from car loans

CPI, inflation and basket of goods are all rigged in the 1st place to pleases the whim of the govt hence many are still guillable until they open their wallet then only realise it is getting lighter and faster

Even though USD depreciation but so long as my asset is performing and compounded 10% yearly in absolute value it is still gain unlike RM appreciated but cost of living increase more than that 🤦‍♀️

Wah, my friend....you "draw a doll until so so real," later xxx will launch attack on you. Unker already got SUS several times for giving alternative opinions. Remember that xxx got heavy marketing and advertising budget to prop up the narrative.

Let it be some ppl just can accept the reality and like paint dreamland scenario

Both of us are realists which are able to accept hence why alternate opinions are important to us because it is because we can weigh both sides

Look at EPF itself always boasting about it’s size 🤦‍♀️ but both of us in terms of returns it is dwindling because that can’t achieve a growth consistently 10% pa because it is not hard to do

Size doesn’t matter these days because what it is important it is growth with similar size or even better smaller size

Sg co dividend payout is also taxfree in the hands of individuals and joint-acct holders. This equals EPF's dividends in the aspect of taxation..
There are other advantages of Sg dividends.

Marketers and cyber troopers are on vacation today. Weekend not working . They need to rest.

Wait for working days. They'll launch nuclear campaign to smoothen the narrative of their pay master

I'm a believer in both EPF and overseas investments, though these days my portfolio is tilted way more towards overseas assets.

That said, for this particular year, sgd dividends looks poor once translated back to ringgit: ringgit has strengthened by roughly 4% (from around 3.29X to 3.17X), so returns get compressed. For example, SG bank stocks may yield 5% in div, but the effective ringgit return is closer to 1%. In comparison, EPF's expected 6% dividend looks much more compelling.

On taxation, I'm aligned with nexona88’s view: in that EPF is simply way cleaner. EPF statement provides a clear, straightforward paper trail for lhdn, which makes compliance much easier. lhdn can't even challenge anything.

I guess they may think that it is a same troll at work, thus may just decide not to feed the known habitual troll

This post has been edited by MUM: Yesterday, 09:39 PM

Interesting scenario… It’s a good thought experiment... but how to compare?

EPF's case: I did a simple back-of-the-envelope calculation: if Person A contributed RM60K per year into EPF starting from 2000, by 2025 he would have about RM3.3 million (using the actual EPF dividend rates from 2000–2024). Purely in terms of amount, that’s already very respectable.

The tricky part is making a fair comparison with property. How do we benchmark Person B?
How many properties do you expect him to successfully "own" and their value for the comparison to be meaningful? Do we assume only prime locations (with the benefit of hindsight), or do we include average or weaker locations as well, including areas outside Klang Valley?

IF ONLY I KNEW back then 25 yrs ago, what would happens now.
I would hv dumped 60k annually with the rest of my saving/investment monies into GOLD from 2000 and switched to BTC from 2009 ...instead of dumped into kwsp and other equities or double story terace

Ha ha ha, ..

This post has been edited by MUM: Today, 05:50 AM

wah... too greedy already...

I would have settled for getting the 10,000 bitcoins by paying 100 usd (the pizza story was 10,000 for 42usd pizza) and call it a lifetime deal... at hindsight... lol

epf is not for you to settle your housing loan or buy a new house worth 1.0M or buy a new car or settle your outstanding personal loan or credit card outstand or whatever debts you have... you are suppose to settle your car, your house or any loan before you retire.. dont carry debt into your retirement else epf wont be able to help you...

epf is for you to go on with life after you stop working with NO INCOME...

even when you retire with 390k (2028 RIA Basic Saving Goal)
with 390k you can spend 2690 per month for 20 years

with Belanjawanku Guideline here is how the 2690 can be allocated:
1. 600 for food
2. 700 for housing
3. 70 for health care
4. 500 for transportation
5. 160 for utilities
6. 80 for personal care
7. 190 for misc / adhoc
8. 180 for social participation
9. 150 for discretion expenses


SOS - https://www.kwsp.gov.my/documents/d/guest/ria_en

This post has been edited by virtualgay: Today, 12:04 AM

BTC wasn’t even existed back then yet 🤦‍♀️ it is only emerged after GFC

I still have my original 1BTC which I bought for the price of USD1 and kept it till today

The guideline is seriously haven’t even factor inflation 🤦‍♀️ so you know how much the cost of healthcare for seniors these days as they need more healthcare testing which costs a lot

The guideline is really unrealistic haven’t factored inflation and also food costs for more nutritional value