They can't afford .

Let's say 3 million ppl..will be RM36 billion a year.

N Malaysia is already starting to be aging nation, with more n more people becoming old.

Ok thanks. After reading the posts, now understood a bit how CPF money used or operate.

CPF - buys SG gov coupons but have preferential rate of around 2.5~4% at minimum (due structure of various account, closer to 4% since they have 4 accounts like special account, medical account and retirement account. Only the ordinary gets a lower 2.5).

SG bond coupons/yield 10 years around 1.6? for other external buyers, so no matter how you look at it, SG gov always top up to CPF or you can say the SG gov borrows money from CPF and pays out 2.5~4%

Then Temasek Holdings, which is private investment arm of the SG gov. Temasek don't take direct money from CPF, but then Ministry of Finance is the shareholder of Temasek and can inject funds into Temasek for various invesment purposes. Where the SG gov gets the money? from bond etc and also CPF money, therefore you can say Temasek could potential be injected with CPF money from Minister of Finance....so it's indirect, from SG gov point of view, left or right pocket only.

Well, I see the benefit of such structure and also not. Good thing the gov always guarantee around 2.5~4%. But bad things, what if Temasek holding makes a killing investing CPF money (indirect anyway via injected fund from Finance Minsitry) and gets 7~8% yield/dividend. Take example, Temasek makes a killing from Pfizer shares/dividend or their other various portfolio return like mutual fund 8~9%.

Temasek via taxation or SG gov draws back fund, only need to take 4% of yield to give back to CPF holders and keep the other 4% for future investment and other stuffs.

For EPF, this is different, EPF investment via their SAA strategy (directly operate in stock market, properties , bonds, money market, banks, companies etc) may get 5~7% and this is return back to shareholders minus the mgmt expenses. This is more direct.

if EPF manage and operates well...it can takes higher cut of yield, for CPF, the SG gov/temasek takes the cut...and return only 4%.

If EPF does the same and invests in only GLCs, we better pull out our money as fast as yesterday!

Hi All,
Happy New Year. Hope this Feb 2022 dividen announcement will bring us positive surprise 😊

Anyway, would like to know on self contribution pump in. What's the cutoff date for the fund to be count in for dividen. I don't think epf is daily rest, but might be monthly. Say I inject RM60k today, 1st Jan vs 30th Jan, the calculation will be same? Any idea? It might be just a Rm250 impact but just curious to know. (base on assumption 5% div)

thanks for the info. just to get my understanding right, meaning deposit on the 3rd or 30th will yield the same dividend right?

Would self contribution in Jan 2022 be considered for up coming dividend declaration?
I made contribution on 30 Dec, epf account updated on 31 Dec.
and 31st dec, account only updated on 4 Jan.

And its true.

If you estimate by the performance of EPF for 2021 thus far, it has out performed 2020 by a long stretch. It can easily dish out 6% taking into account Rm100 billion principal has been withdrawn in the year.
But politically, they won't. Because they will want to keep some for rainy day and it cannot be too much more than ASB.
However, it its election year, they may give you a few points more.

Am I able to pump in.. . Say 6 figures into my parents epf to enjoy the dividend?

Self contribution last week but the money is not showing, could it be EPF is updating the dividend

...
Now, back to you as one of EPF depositor, why should you not react negatively to EPF giving more returns to the poor than the rich when you belong in the "rich group"?
Because, believe it or not, we pay for these poor people who have not enough retirement savings one way or another. If we don't pay for it in the form of lower EPF returns, we will pay for it in taxes (could be inheritance tax, capital gain tax, GST etc), or our future generation will pay for it, in both $$ and doomed future because the country is no longer competitive
...

Answer the easy part first; both are considered poor, as their savings in EPF is below the defined basic savings at their age. And therefore both should enjoy the extra dividend that I suggested

Go back to the core purpose of EPF, or any pension scheme. Is it not for retirement savings, to build social safety net for EVERY retiree? If you look at how social security works in the US
I bet you would also think unemployment benefits are bad

...

...
I guess I'm right about the mindset that "It's MY money, no one should enjoy more returns than me"

Well said, summarised the problem of Malaysia in 1 single sentence. It's really not about the greater good of EVERYONE, but what is GOOD for ME

That mindset, have sent Malaysia to the trash and will keep us there for years to come

Well, the contractual agreement or commitment that EPF gave to us as depositors is only minimum 2.5%, so the analogy is not quite right.

On your other post about 56 years old, u are right, I forgot that person could have done the full withdrawal and the balance is from the golden account. So that person might not be entitled to extra dividend

...

...
Have you considered this, that the EPF doesn't need to work so hard to give maximum returns to the depositors, they could have done the CPF model, let Khazanah make all the alpha returns and keep it in the coffers (or worst, let the politicians used them as they pleased, to secure vote bank from the B40)
...

It's a nice smokescreen deployed by government, that people will go scream at that 260 people with millions they earned in EPF rather than some offshore account, rather than scream at the politicians that failed to ensure the other millions of people can't even have 10k in it.

And if you see here, plenty of people fell for that trick by saying its fair la, just la, etc etc... never once question the failure of the government to provide the conditions that allow people to thrive.

All these excitement on the dividen is for some that qualify to withdraw.. Else it's just be a paper gain and by the time we know it, kwsp might follow Singapore and increase the retirement age and withdrawal will be delay.. Can only see and feel good but whne can not withdraw, it's another story.

Just wondering, can gomen ammed the condition for withdrawal overnight? Or can they also overnight remove the above 1mil withdrawal clause?

Curious.

while i still don't bother to consider i have fund in epf, its still nice to see it growing.
like you, i also look at it from time to time, and project what is the end figure at the end of year. something i do since mco.

while not /k standard, i projected its quite a substantial figure after 15 years, which is still several years from retirement age. having that give a peace of mind, i just have to work on my part (on top of epf) for the other half of retirement.

that's excluding's my wife's too.

you realize by that time maggi mee will be RM50 a packet right? ... just saying...

This is assuming that the person does not withdraw the EPF at all for loan, education, etc. Also, must take inflation of 3% into account.

But I agree, do not look down on EPF as they have proven that they provide a steady return each year.