The problem is the top contributors are mostly retiree or >1 mil and can withdraw anytime. The moment they feel like it's not worth to leave their money in EPF (low interest), there will be a mass withdrawal.

Why withdraw all? Just withdraw the amount in the low dividend tier. Max the high dividend tiers.

If say anything above 1m is 4% or lower, will you withdraw?

4% probably not. 3.X% or less, I will start looking around.

This post has been edited by loserguy: Mar 17 2022, 05:47 PM

Tiered dividend will only benefit the majority of the voter bank. The M40 will likely be affected the most.

u need 166 yrs to reach that 10 mil with the capped at 60K per yr. Can u live that long? LOL...

Need to factor in compound return.

if use 5% pa return, starting with zero and every year just put in 60K, basically need 45 years.

if change the return to 6% pa, a bit faster... only 40 years.

What I do find impressive is if allocate 60K rm pa and 6% pa return, it just takes 11 years to reach 1 million.

I calculate my EPF can reach 2m in few years

Syok

to be exact u need to also put in full 12 mths every year to get the full interest...realistically no one start from 60K on the first year lar....don't count in FAMA help or passed over wealth....

since we are talking about 45 years or 40 years, it doesn't really matter whether its at beginning or end or periodic.

the key is not simply to take it out to cover up the fact that our gov is useless and need US the EPF holders to save ourselves during COVID.

and then suddenly you notice that every month also can spend 10K rm.... nice rite?

I think I can do that now.
Nice!
Good thing is I don't have to.
Still got cashflow from contract job.

This post has been edited by prophetjul: Jun 3 2022, 04:54 PM

and I get envious of the gratuity....

haha...

use EPF as your piggy bank.... no point any cash in any bank's FD with the rising rates environment.

I use 5% returns to estimate.

Keep 2m as principal, I can withdraw 100k per year, 8k per month

It's safely deposited in.
Now I wonder if it's the right thing to do.

What with the ringgit dying.

with assumption still can get 5 or 6% interest rate? with the market condition like this now...i wonder if it's more logical to lower the expectation to minimum 2.5% interest...which is still better than holding stocks return which could be in negative range...and that makes me wonder...if ePF has stakes in stocks...and if stocks tanking and in negative range..how can epf payout dividend?

As long as there's steady contribution from new/existing members, they can afford the dividend payout.

you can stop working now lo, everyday go starbuck limteh.

I wonder if we can ever stop working if we have less than RM3M in EPF. Even if we are getting 6% return, it's just RM180K per year, which means just RM15K per month.

Look at how expensive food and other necessities are, RM15K barely able to cover for a couple.

Hi, can Expat status with EPF member account eligible for self contribution too?