As long as new workers and contributors continue to grow and out number withdrawals, there will be enough money....but like all pension funds, the problem will come in future when the society matures, and there are less young people, and the current youths reaches retirement....there may not be enough money to pay out....

When that will come, if we look at other matured societies like Japan, even Singapore, we will see the population pyramid change from pyramid to fat man in the next 30 years....

Short of an economic disaster, or gross management negligence EPF should be safe for the next 30 years....

Even if it is managed properly, it can enter into trouble....once retirees outnumber new contributors.... because it means negative equity and shrinking fund....if caught in a recession, or in Japan's case, prolonged period of low growth, the liquidation of assets to fund the negative equity may be inadequate to cover excess withdrawals....and collapse of the fund becomes a real possibility....

At this point, EPF is quite conservatively managed...albeit needing to perform "national service" at times.... but it's a very sweet pot of honey, politicians always will be tempted to help themselves to the pot....

I am well aware of the different models of pension schemes....I am referring specifically to the defined contribution version as in EPF....

Epf type can have 2 potential problems to face....

When the time comes where withdrawals exceed contributions, the fund starts shrinking....and liquidation of assets starts....you just need a perfect storm of prolonged recession, low asset prices and low returns to see the fund getting into trouble....

And it's a sweet pot of honey politicians love to dip their fingers in....EPF bought into fgv IPO....to their credit, they got out fast once they sense it going sour....but still lost lots of money....this is the aspect many fear....

This post has been edited by limeuu: Feb 26 2018, 11:30 AM