unless this is a completely new EPF rule (which one can only confirm after EPF announce dividend and even then need to work out in excel the cashflow + interest), any money withdrawn will be entitled to accrued interest until the date of withdrawal...

so, if one's monthly expenditures is 20K rm, then every week take out 5K rm seems decent... but I guess can daily login into EPF and take out 1K rm also so that the remainder "20K funds not yet withdrawn for the month" can enjoy the 5.x% pa accrual interest.

Can point the post? And if this a new announcement mentioned this year?

Previous years clearly is not the case as I calculated all interests from epf based in actual cash flow.

this is for closing of account, so not relevant to us here who is basically treating EPF as a high yield CASA (especially after 60 years old).

the same issue if one choose to pick the monthly payment withdrawal plan... the entire sum will be earmarked and removed from accrual dividend calculation.... so this day and age, this plan no longer makes sense if one can just click click everyweek/month and just input the amount to withdraw while still enjoy accrual dividend/interest.

judging from the last 10 posts, basically nothing has changed.

So the answer is yes, u will still earn dividend from Jan 1 to June 30 on accrual basis.

yes. Basically nothing has changed.

have to read under which case the dividend is calculated. ie close account (which EPF confusingly call it Full Withdrawal) is calculated differently from normal withdrawal (ie click click and enter our amount).

daily aggregated balance just mean take the balance at end of each day and sum them up.

now what is the modified. This is the part where EPF explained with statement "Contributions for a particular month will be eligible for dividend based on the last day of the contribution month until 31st December 2023" and the example in their website.




No mention about this "modified" feature affecting the other activities that can change the daily balance of your EPF account, which basically are only withdrawals.

Hence, withdrawal amount will earn accrued interest till the day of withdrawal, as on the day of withdrawal, one's balance will reduce.

All above is based on logic and assuming the words mean what they mean. And confirmed by the fact that my excel calculation matches the actual dividend payment down to cents. (I do withdraw my epf frequently for years)

yes... that's why i said for those who can, and rely on EPF as one's CASA, only withdraw what one needs on weekly basis (well, daily also can, but it maybe too much work...)... like if monthly spending is 20K rm, just take out 5K on weekly basis... as that allows the remaining monthly balance to accrue dividend...


(i think the extra dividend is like 50rm... means can eat extra 6 plates of normal chicken rice for the month... )

could not have said it better...

5.xx% pa return with way lesser worry... no need to hunt for special FD rate from banks... no need to worry about bankers stealing your fd without you knowing (got some news about it)...
if scammers want to get your funds in EPF, they basically need to hack 2 institutions: EPF and your bank. kena con by love doesn't count as being scammed imho...

once setup done properly, all future withdrawals via the website (and i assume app as well. I don't use the app to withdraw) is seemless and you don't need to retype ur bank info.

amongst the many investment vehicles available in Malaysia, UT is not the worst...

If they basically remove all the high upfront fees and control better the trailers/management fees, then UT would be much much better. But i suspect the industry refuse to let go of this fat fat cash cow... imagine kena chop 5% before one's money even get a chance to run...

what he is trying to inform is that the EPF stats has been politicized and used improperly...

which is also what you are saying...

the crux is... is EPF balance more useful when one is 30 years old or when one is 60 years old.

Nope. Your two reasonings are just lazy arguments.

Others had explained before in this thread.go read up. I am too lazy to spell it out again. If u r remotely earnest, work out someone earning 2K per month from 22 years old till 60 and check the balance.

This post has been edited by Wedchar2912: Sep 9 2024, 04:39 PM

It's because majority fail math.

24K per year pay. 30 years with zero interest is also 720K RM. 20% of that is 144K RM.

Back in 1994, getting a job paying 1K per month relatively easy.

So the real issue is still not being divulge by kwsp.

why you move goalpost of discussion?

what was the original issue? the balances in EPF according to kwsp stats right? now talk about inflation pulak.

This post has been edited by Wedchar2912: Sep 10 2024, 01:02 PM

technically, the guarantee of 2.5% minimum return is given by Federal Gov... This is a free option, and it makes all your funds in EPF safer than even money in any banks. Plus your funds in EPF is creditor proof (you can be declared bankrupt, and no one can touch your money in epf)

in your cashflow planning after retirement, if all you have is in EPF, i would recommend a lower withdrawal rate... margin of safety.
But if you have other sources of income, 5% seems reasonable.

you can just work backward how much u like your EPF to be at for you to feel comfortable. Say monthly you want 1K rm, so assuming 5% u target 240K ringgit. scale up using this example.

just sharing my strategy, which I am currently executing. my return assumption is 6% for my ease of calculation. I have a minimum spending budget to support my family, and it is 10K rm pm. I took out the excess from my EPF to invest elsewhere. every week I withdraw from my Epf the amount needed to spend...
simple as that, and I had early retired for a few years already. so far so good (life stress test... haha)


This post has been edited by Wedchar2912: Sep 10 2024, 01:07 PM

deleted... lazy to entertain silly minds and i just wasted my time replying...

This post has been edited by Wedchar2912: Sep 10 2024, 03:24 PM

can just use a low, realistic and safe withdrawal rate on pa basis on one's networth... for example, use 4% (this is the standard withdrawal rate by many who practices FIRE)... if one has 4 million, that means 160K per annum of spending.
That way, one just spend what one can afford based on one's actual networth of each year.


Personally, I prefer 2% as I am not old enough... if nothing else, back of envelop calc, my worth can last me 50 years... the inflation is already factored in if you think about it.

that's why I used the phrase networth (not just EPF) and also mentioned that 2% is what I use...

too many factors to mention in a simple post:
for example age before expiration (ie how long to live)... if one is 70 and in bad health, taking out 5% is also not a bad idea... Malaysians, culturally, like to leave behind something but it doesn't mean we cannot deplete one's principal.

there is a simplier way to compartmentalize the problem...

set aside what one wish to pass down, and the remainder can just spend with intention to deplete.
say if EPF has 4 million, but wish to pass down 1 million, then spend 6% on the remainder 3 million. something along those lines.

incidentally, this will be my future plan when I am much older on the whole networth. not just EPF.

what I know is that for someone to claim ringgit been doing very well by cherry picking from all time low (weakest) to current level indicates some ulterior motive, or plainly to satisfy some narrative.

the more interesting question we all should have is what will ringgit move from 4.8xx to 4.2xx or lower will mean for our EPF performance this year...
did EPF manage to remit back the funds when usd was stronger earlier?
any funds EPF left overseas, did those funds garner a greater return than the 10% ringgit appreciation this year?

like my case, I knew very well when i took out my epf to invest overseas, ringgit was weak.... but gosh, those investments already made more than 12 years worth of epf return compounded in ringgit terms... if ringgit didn't appreciate, it would have been even better. Is this plain good luck?
Now my headache is whether to continue the said investments or remit back to Malaysia... that's why I am open to rationales of why Malaysia/ringgit will continue to do better....
(problem is did anything change? or this is just USD weakening or global trade disruptions)