Category Archives: Retirement Planning

EPF Top Up Saving

Malaysia’s national pension fund EPF, was ranked the 8th largest fund in the world with US$94.66bil. Do you believe this? Apart from investing in domestic assets, EPF continues to enhance to diversify its portfolio into foreign markets particularly in equities.


Although you are not believe with the above facts, but one thing you should believe is you can top up in your EPF Account 1 in order to maximize your retirement savings. The minimum amount for each top up is just MYR 50.00. This saving can only be withdrawn when the toppee reaches the age of 55, or Death.

There may not have strict policy to be a Saving Topper:
– He/She may be a Malaysian or Non-Malaysian Citizens.
– He/She need not be an EPF member.
– He/She may top up to more than one Toppee.

There may have some requirements need to be met as a Saving Toppee:
– He/She must be a registered EPF member.
– He/She must not exceed the age 55.
– He/She must be either a Malaysian citizen or a Permanent Resident.

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Withdraw EPF For Investment

Under new “Beyond Savings” scheme, you can now make withdrawals from EPF Account 1 for investment. You are allowed to invest 20% of the amount in excess of the required basic savings in Account 1 and minimum investment for unit trust is RM1,000. For example, the basic savings amount for a contributor who aged 25 (like me) is RM9,000. So, in order to withdraw for UT investment, I must have RM14,000. Do you know why?


Thus, different age may have different basic savings amount.

How much would one need for retirement?

Experts say this depends on the individual and his lifestyle. And how much he is willing to reduce consumption such as eat out less often, buy fewer things, live in a smaller house, drive less, and travel less. In fact, financing database Motley Fool have figures which show that even as little as 2% cut on monthly expenses can boost retirement funds by as much as 500%.

More younger people are becoming bankrupt as they are spending “tomorrow’s money”. Which basically means these people are not saving or building their retirement nest.

Stumble it!

EPF Retirement Fund: Do You Have Enough?

Only Malaysians are so stupid as being forced to save and let their money goes missing without knowing how it will affect them in the future. How can anyone help this poor Malaysians from keeping fully promise on EPF?

The Employees Provident Fund (EPF) helps you save money for retirement. While you can’t withdraw your fund, EPF lets you invest some portion of your money in Unit Trust. However, we can’t rely too much since promise for higher return may comes with risk.

EPF Analysis

Generally speaking,current EPF return is 5.8%. EPF highest dividend payout is 8.5%, which was in between 1983-1987. After that, it drop to 8.0% (1988-1994).

Next article will be “How to invest in Unit Trust through EPF”. Stay Tuned…

Good News For EPF Account Holders

What do you think about the lower service charge set by the EPF? Currently unit trust companies can charge up to 6.5% in service charge for investments. This is either Public Bank or Public Mutual rate, which are the highest unit trust rates among other’s unit trust. From Jan 1 2008 all investment that are done through EPF will only be charged a max of 3%. It’s great news for those who invest in unit trusts through EPF. Do you think that’s low enough or is it still high?

Anyway, it’s a great move for EPF to force to reduce the service charge; this will make the UT industry more healthy and active. Indirectly, this move will make all the UT companies to reduce the normal service charge as well.

I think people should not just think of it from one point of view.
Lowering the initial fee is good for EPF investors, but it is actually cutting the commissions of agents. Indirectly, it would cause agents not willing to handle EPF cases, thus not making the investors any good as well. Am I right?

There are 2 accounts in your EPF.
=>Account 1, 70% of your money goes towards your retirement and can only be withdrawn once you reach the age of 55.
=>Account 2, 30% of your money, can be used to obtain a housing loan, education, medical expenses, and pre-retirement withdrawal at age of 50 instead of 55.