More formally known as the Employees Provident Fund, whether or not to use the EPF is a matter that’s been intensely debated among Malaysians for quite a while now. So, if you’re wondering if it’s okay to entrust your pension funds to this system, here is some information that can help you make a more informed decision!
(Employees Provident Fund) EPF – What It Is?
In basic terms, the Employees Provident Fund is a federal statutory body that operates under the Ministry of Finance and manages the savings and retirement planning for working Malaysians all over the country. Is Putting Your Savings in EPF a Smart Play? Yes, it is!
In many ways, this program can be considered the most critical aspect of your retirement planning. As a wholly safe and government-backed investment venture, you can always rest assured of a profit when you trust your savings to this system. The EPF has always promised and delivered a minimum annual dividend of 2.5%. And depending on several factors, that value can go even higher.
Who Can Access EPF?
Currently, virtually everyone is eligible to benefit from this program, not just workers with employees. Everyone from individuals operating in the gig space to people who run their businesses and even stay-at-home moms can benefit from using EPF. You need to deposit whatever amount you can at any time that’s most comfortable for you, and you’ll be slowly but surely securing your future! The only people excluded from this program are public sector workers who already have a government pension plan.
What’s The Upper Limit For EPF?
You can’t put more than RM 60 000 in your EPF per annum. It is valid for everyone, from workers with employees to stay-at-home moms. RM 60 000 is the established upper limit for a fiscal year, so you can’t save more than that.
Why Is It So Important To Put Something Away For Retirement?
Using resources like EPF is vital because you’d need access to at least RM 1 000 a month to take care of yourself once you retire. It is the bare minimum as considerably higher amounts are necessary if you want to ensure maximum comfort in old age. As a result, even if you have other investments, putting something away in your EPF can give you that much-needed level of assurance that you are indeed covering your bases. Thanks to the fact that the EPF hasn’t failed since its implementation, you can effectively secure your retirement funds.
When Can I Access My EPF?
Barring a few unique circumstances, you’ll only be able to get access to these funds after you turn 55. It ensures you have enough to spend for the rest of your natural life.
EPF is the ideal solution if you want to put your savings into something you can trust and rely on.