I'll never dump more than required into my EPF account. Reason? It is extremely illiquid.

What use is the guaranteed 2.5% interest rate if you can't use it? Its your own money but you do not have access to it?

Experts suggest the average people to not touch their EPF money, because average people will buy liabilities instead of assets. Are you average? If yes then invest in EPF.

Yes bro, that is why I said EPF savings is for the average person as their forced savings.

If you are better than the average, you'll find much better investment outside with better liquidity.

You don't have to beat EPF rate, its ok to be slightly lower than EPF because EPF is locked until 55 years old.

EPF with 5.5% compared to let's say ASM which gives ~4.5%, ASM will still be better because you can redeem it anytime and is as good as cash.

Another way will be to invest in property. Let's say if you found a good deal in the market but all of your money is invested in EPF, you'll miss out on the deal.

Of course, EPF is important for your retirement savings. There's where the compulsory EPF contribution comes in. You can just leave it inside and let it grow as your retirement savings.

4.5% fixed is around 8% effective.

What money are you even making?

But if you looked at the website, it is 4.5% EIR, 2.4% fixed rate.

https://www.cimb.com.my/en/personal/day-to-...loan-fsa2..html

So it does make sense granted that you get the 4.5% rate.

why would a 15 yo get isaraan?

I mean, why would the gov give your kids i-saraan?

Of course there will be checking.

Requirement:

Self-employed individuals
Who derive income from own work and are not an employee

That’s why when gov announced EPF withdrawal, I took it without a second thought.

It wasn’t a popular decision within my circle, but I knew what I was doing.

This is what happens when your money is locked with someone else, you do not have any say in it.

Since when there is no hanky panky in EPF and ASNB lol. The same reason why ASB dividend is always higher than ASM

Game over for the zero risk tolerance apek and aunty to dump all their savings into EPF for guaranteed returns.

Time to learn how to invest in the real world.

Can see it coming already when the increase the annual contribution from 60 to 100k.

Two ways too look at it.

Their profit can only be that much, and when you have too many savers, the profits get diluted.

Market reacts by the reduction of savers, and the profits is improved for each depositor.

You cannot expect the profit to always increase with more funds available. The scalability will stagnate at a certain point.

Dividend will all go into Acc 1?

Are you sure the anger came from the younger population?

Compared to the older retirees, the young ones who has just worked for a few years probably has less than 100k in EPF.

With that amount the EPF dividend % does not make a huge difference and they probably does not even bat an eye on the news.

The one making noises are the older ones with loads of money in EPF (>1 mil), because they are losing much more in absolute value from the announcement.

And even if they are already entitled to withdraw their EPF sum, they are not comfortable taking any risk for the same/lower return, that's why make noise lo. They want EPF to continue to be their goose that lay golden eggs

Considered the young ones.

And I have been trying to withdraw as much as I can.

Couldn't really care less how much dividend EPF is giving out as I am less impacted

I rather contribute 30% to Acc 2 than to contribute 5% more to Acc 1.

Now that 75% is locked in until retirement.

How hard it is to withdraw from Acc 2 anyway that you will need Acc 3?

Acc 3 does not fix anything, in any case it made everyone worse off.

Those pushing for withdrawal- will not have anything to withdraw as Acc 3 starts from 0 and it will take a while to build up the 10% savings pot.
Those content with their savings in EPF- extra work for them to move from Acc 3 to Acc 2/1 as Acc 3 will have lower dividend
Those on the fence/withdrawing Acc 2 only- have lesser amount to play with for housing/medical purposes (previously 30% contributed to Acc 2, now 25% for Acc 2+3 combined) and also will have extra work to move from Acc 3 to Acc 2/1

then just stick to the good old 70/30 if you are unwilling to give out another round of withdrawal.

now you are letting 10% out but at the same time increasing Acc 1 by 5%, not sure who will be happy with the news.

cut what? nothing has changed for employee and employer contribution rate

Why would they need to rebalance?

Just start fresh from 0