Retirement Planning | Malaysia's Financial Blogger | Financial Freedom Ideas

How To Calculate Your EPF Dividend?

As everybody known, the Employees Provident Fund (EPF) declared 5.65% of dividend for the financial year 2009. In order to be smart and calculative in personal finance matters, understanding the calculation of EPF dividend is an essential part of the learning process.

epfdividendcalculation

EPF’s dividend calculation is not that straight forward. I’m sure still many of you do not know how to calculate EPF dividend. Most of the people will take the total contribution of that particular account and just multiply with 5.65% dividend. If you’re one of them, then this is a good chance for you to learn from mistake.

The following is my calculation of the dividend:

August 27th, 2010 | 1 Comment

EPF Death Withdrawal

Nominate Beneficiary

Most of the time, we are highly urged to name our nominees because the process of withdrawing EPF savings will not be as simple but may be more time- consuming. When there is no nominee, the EPF will pay the savings of the deceased member to the next-of-kin. He or she may apply to withdraw the deceased member’s savings by producing the following documents:

* Member’s death certificate
* Applicant’s identification card
* Letter of Administration which is produced by the High Court
* Documents that verify the applicant’s relationship with the deceased
* Marriage certificate
* Children’s birth certificate (if any)
* Personal savings account passbook

Payment will be made to the next of kin and is subjected to the member’s total savings as follows:

i) Member’s total savings is less than RM2,500
- All of member’s savings will be paid in full.

July 13th, 2010 | Leave a Comment

How Much Can Withdraw from EPF Account II for Purchasing House?

Based on the EPF retirement plan, money accumulated in an EPF savings account II can only be withdrawn when members reach 50 years old, and they may allow to withdraw only 30% of their EPF, members who are 55 years old or older may withdraw all of their EPF.

epf account 2

EPF Account II Withdrawal at Age 50 Years

EPF allows you to make one shot withdrawal at the age of 50 years. In the other words, you are allowed to withdraw all your savings in Account II in order to help you prepare for your earlier retirement.

There is no restriction on how your money going to use. But, it is advisable that you use the money wisely and do not spend the money away, else you may not be able to achieve the kind of retirement life that you wished for.

Applications to withdraw can be submitted 6 months before reaching age 50 years. And, payment will only be processed after you reached 50.

Eligibility for Withdrawal:

You can withdraw your savings in EPF account II to finance the purchase of a house. If you obtained a full housing loan (100%), you are eligible to withdraw as much as 10% of the price of the house or the balance available in Account II, whichever is lower.

epf account 2
If you purchased a house by cash, you are eligible to withdraw as much as the price of the house with an additional 10% of the price of the house or the balance available in Account II, whichever is lower.

July 4th, 2010 | 3 Comments

How If Employer Not Paying You EPF?

If you noticed that your employers did not contribute you EPF then you can report it to the Labor Office. You are advised to check your EPF account regularly, which you can do that by visiting the KWSP office, EPF smart kiosk, and online through EPF i-Account. This way will be more secure than printing details of your pay slip.

epf_kswp

Employee Provident Fund (EPF) provides the retirement fund for Malaysian employees, and can also be used for other financial purposes including down payment for buying house, education payment, medical payment and so on.

It is their responsibility to contribute for employees’ EPF savings else the following legal actions will be taken on them:

* Fine not more than RM 10,000 or Jail Sentence not more than 3 years or both.
* The company director passport will be held in order to prevent them from leaving our country.

When EPF Contributions Must Be Paid?

June 5th, 2010 | Leave a Comment

KWSP Malaysia for Monthly Housing Loan Payment

kwsp_malaysia

I heard a lot of forumer keep on discussing about this issue recently - KWSP steal citizen money! KWSP allow monthly withdrawal from EPF account 2 for the monthly housing loan repayment. But, from their discussion, some of them said that the withdrawal plan is actually a SCAM! I am sure you will feel keen to know more on this issue, right? Let me share with you what I’ve heard:

We take an assumption here:

If you have RM50,000 in your EPF account 2 and your monthly housing loan’s installment is RM1000/month. KWSP will approve your application of withdrawal from your EPF account 2 of RM50,000 and pay you RM1000/month for the next 50 months.

The only thing that KWSP did not inform us in detail is that when the application was approved, will the total amount RM50,000 is removed from EPF account 2? In the other words, it appears to be transferred to an unknown account to effect the monthly payment?

March 13th, 2010 | 6 Comments

Have You Updated Your KWSP Nominations?

kwsp_nomination

Most of the people may think that KWSP is our biggest saving account. Our KWSP consist of an estimated 23% (11% + 12%) of our monthly salary. So, if you calculate precisely, that’s more than 1/5 of our salary. The main purpose is to provide support for our retirement plan.

Have you ever wondered, what would happen if you suddenly have to say goodbye forever to this world? What would happen to your KWSP saving? Will your loved ones or child know about your KWSP savings? Even if they know about it, can they withdraw your KWSP savings in case something happen to you?

Update Your KWSP Nominations Now

October 11th, 2009 | 2 Comments

How To Invest Public Mutual Fund Using EPF?

At first, I would like to take this opportunity to say thank to my friend who is also Malaysia’s Public Mutual Agent - Yeoh Tze Haw as he provides this kind of EPF investment information for me to share with you all.

public mutual fund

For those of you who have not invested in unit trust using your EPF, it’s time to invest. EPF themselves uses OUR money to invest in funds to earn returns to pay contributors smaller dividends. Last year 4.5%. Where else if you invest directly into unit trust you can earn between 10-12%.

As I known, this new investment scheme started since 1st February 2008, all investor can invest but not more than 20% of their savings in EPF account 1. This kind of investment only allows investing once for every 3 months and minimum investment is RM1, 000.

How To Apply?

EPF

1) Photocopy of your NRIC (both side)
2) Fill up KWSP investment form with some personal details
3) Fill up mutual fund companies investment forms.

What Fund Can You Invest?

All funds that has approved by EPF:

i. Public Regular Savings Fund (PRSF)
ii. Public Index Fund (PIX)
iii. Public Islamic Equity Fund (PIEF)
iv. Public Islamic Balance Fund (PIBF)
v. Public Islamic Sector Select Fund (PISSF) - CLOSED
vi. Public Sector Select Fund (PSSF) - CLOSED
vii. Public Select Bond Fund (PSBF)
viii. Public Money Market Fund (PMMF)
ix. Public Islamic Money Market Fund (PIMMF)
x. Public Islamic Select Treasures Fund (PISTF) - NEW!!!

How Much You Can Invest In EPF Approved Unit Trust Fund?

May 31st, 2009 | 61 Comments