The newspaper reports should have indicated in their reports that the 2.5% minimum has no difference from what was status quo, reported back in the 90's. The EPF should also highlight on this, as a legal practitioner, I would word my statements in ways that would not constitute misrepresentations and confusing siruations from arising.

It is the fault of the reporters and the EPF AND the minister who took and gave the press briefings.

Not everybody is like Cherroy who has sufficient knowledge on this.

Another way to look at it is that they are reminding us of this 2.5% again,.... because it may happen moving forqard. Perhaps gone re the days of the 6% and above dividend rates.

Look at Sgp's CPF rates. Well,................... off the record,... overheard a personal conversation between a Chinese dep minister in the Ministry of Finance and his aides at a function,...... very well-versed with Sgp affairs,... commented that it's not logical to give out 6+% for a national pension fund. Said if someone wants such high yields, he should go for other riskier investments.

Said a safe pension fund should yield lower than FD. I guessed it's just his personal opinion.

Edited by adding : So, can't depend on anyone, not even the Government for your retirement survivalhood,... better pickup investment knowledge as soon as possible.

I can sense your fear of money being "locked" after reaching 55yo by looking on your repetitive posting on the same issue past few days

THat's right, my friend,... I do have some amount in the EPF, and I would like this amount to continue earning dividends inside our safe EPF. Of course, I would prefer to top-up into this account if the dividends are still good moving forward, but if they change the rules and do not allow it anymore, I will top-up as much as I can in the next few years before I reach 55.

However, I wouldn't ant whatever I have inside the account to be locked-away from reach after I'm 55. I'd like to continue withdrawing the dividend for my pleasure activities in the country. I'll just let the principle remain inside without withdrawal, to continue earning the dividend.

Annnnnd,... if the dividend yield drops below 5.5%, I'll withdraw everything out and put onto that instrument that I have taregetted.

I have an uncle who's in 75 now and has worked since the 1970s. He had not withdraw a single dime from his EPF.  His plan is to continue to accumulate as much dividends as possible (since it is higher than FD) until EPF forces him to distributed his money.  He treating the EPF as long term investments with very little risk. At one year, I think he said he got a notice saying that EPF disallows any member who is not contributing to continue to let their money sit in the account, then the following year, he got another notice, he can continue let his money in there till 80.  He has named his nominees since then (of course in preparation just in case, he passes suddenly). So, he got about 5 more years to let his money to continue to grow.
Therefore, I don't think they would restrict anyone to withdraw after 55 (which is the qualify retirement age), if they really do retire and not working anymore.

It does not make sense say for example, if one decides to work and contribute until 57  - two more years into past their qualified 55 retirement age, then starting at 57.5, they wanted to retire and starting to withdraw, EPF ruling would prohibit them just because they are under 60 (since they're not contributing anymore).

I believe if anyone do want to continue to work beyond 55, while the individual is still WORKING beyond 55, both the employee & employer are continuing to contribute into EPF, concurrent withdrawal is perhaps PROHIBITED at that time. Now, this would make more sense. 

Hi Dan,... the only thing that troubles me is what sort of system will they use to administer this : let's say if they prohibit contributions after 55, but allow carry-overs, that means the system will track two ends of the funds, eg, if I have, say, RM50K carried-over after I attain 55yo, and then I contribute another 1K when I am 56yo, so the system will allow me to withdraw any amount up to RM50K, but will stop me from withdrawing the last RM1K until I reach 60yo ?

It will not be easy to program such a system.... will dividends be calculated based on all the RM51K, then the dividends for the RM50K carried-over can be withdrawn before 60yo, but dividends earned against the RM1K contributed is NOT allowed to be withdrawn before one attains 60yo. Wow,.....sound complicated to me,..............

I think we all know that. Anyway Hansel you can always use your overseas fund to support your life should epf implement this. Is not a big issue for you. It might be an issue for those that  haven't diversify outside malaysia and into other instruments.

Bro, max you can topup in a year is rm60k

Yes,... that's right,... just RM60K max per year,... Did not elaborate to this level earlier. Tq.

Hansel,

I think you're like me right now. I contribute to my own EPF fund using my own fund, maxing out by to the limit (60k/year).  I don't intend to withdraw either even till past 55 unless my financial situation changes or I decided to retire early (before 60) or there are some major change in the EPF ruling. My intention of EPF is to use it for our (spouse and myself) future retirement or spending only in Malaysia - which are years down the road. I can't find any risk-free FD-like fund that can beat EPF at the moment, so putting money in EPF is ok with me.

Furthermore, with the low ringgit value this year, I got 15%-20% discount after converting to Ringgit to fund the account. 

Hansel,

I think you're like me right now. I contribute to my own EPF fund using my own fund, maxing out to the limit (60k/year).  I don't intend to withdraw either even till past 55 unless my financial situation changes or I decided to retire early (before 60) or there are some major change in the EPF ruling. My intention of EPF is to use it for our (spouse and myself) future retirement or spending only in Malaysia - which are years down the road. I can't find any risk-free FD-like fund that can beat EPF at the moment, so putting money in EPF is ok with me.

Furthermore, with the low ringgit value this year, I got 15%-20% discount after converting to Ringgit to fund the account. 

Actually there is. Those Amanah saham fixed price fund (ASM, as1m, asw2020). Buy and sell units at rm1. Dividends won't be as high as epf but nevertheless it is around 6.4%. They are launching a new fund new year. You can prepare your cash in advance.

They are much safer than epf as they are governed by SC. So the money cant br used just like that.

Please be more transparent and tell Dan about the possibility of the fixed-price funds converting into variable-priced funds, and of the taxation matters pertaining to the funds that you have mentioned.

Secondly, I don't think the EPF can keep-up the above 6% dividend consistently year-after-year.

Please be more transparent and tell Dan about the possibility of the fixed-price funds converting into variable-priced funds, and of the taxation matters pertaining to the funds that you have mentioned.

Secondly, I don't think the EPF can keep-up the above 6% dividend consistently year-after-year.

Well, again I am pretty confident none of that's going to happen. They will kill the golden goose and get themselves into trouble. It have been autorenew for years and no one noticed. It's already end of October and there's no news. These kind of implementation takes time.

Actually I think it can. Epf states minimum they must give is 2.5%. But they have been giving 6.x% for a while. We do not know whether EPF money is used for you know what. Let's assume it has. By not giving 6.x% dividends and only giving say 4.X%, more people is going to withdraw all once they reached 55 and dump into FD. That's big trouble. That cannot allowed to happen. So to prevent that from happening, there is a need to give 6.X% to entice people to continue holding and not withdrawing all one shot. You are forgetting that epf have investment overseas. They are not bound in malaysia only unlike asx. But unlike asx, they are NOT GOVERNED by a SC.  Making it more dangerous.

By the way, I still stand by what I said in the PM.

Hansel, I know about those other products too but I don't to get into them because of those caveats.
Also, I agree with you. That above 6% rate won't last forever but the last 5 years been good.  I was only expecting 4~5%. As long as Msia EPF pays better than Singapore CPF, I'm ok with it despite the currency issue. I think we have hit the low point here around 2.85 to 3.15 rate (sgd to ringgit) for this year. 

I guessed at the same when you were constructing the above post, I was writing-up my reply for Ramjade. Great,... you confirmed my points in my reply to Ramjade.

I am in agreement with you on your points. What that is making me nervous is that they did not specify clearly what the treatment is for 'leftovers' in our EPF account when there is no further contribution after 55.

Actually what's wrong with Singapore CPF and their FD? Why are they bring so Stingy? I feel that malaysia's epf is more generous and out banks are pretty generous with FDs

Actually what's wrong with Singapore CPF and their FD? Why are they bring so Stingy? I feel that malaysia's epf is more generous and out banks are pretty generous with FDs

Actually what's wrong with Singapore CPF and their FD? Why are they bring so Stingy? I feel that malaysia's epf is more generous and out banks are pretty generous with FDs