WILL YOUR EPF MONEY BE ENOUGH FOR YOUR RETIREMENT???

WILL YOUR EPF MONEY BE ENOUGH FOR YOUR RETIREMENT?

Much has been written and documented, both locally and overseas, about individuals underestimating how much money they will need for retirement that you’re probably very familiar with the issue! So, the only relevant question now is: Are you going to be one of those unfortunate people?

A typical Malaysian, aged 40, who spends RM60,000 this year maintaining his lifestyle will need an estimated RM108,000 to fund his first year of retirement when he stops working at 55, if inflation averages 4% a year, between now and then. Even if he only lives until he’s 74, he’ll still need an accumulated total retirement fund of RM1.9 million* by the time he’s 55. That is an astoundingly large sum for most people, but if you take sensible steps to make your money work harder, you can move a long way towards achieving that goal.

Thankfully, the Employees Provident Fund (EPF) has allowed you (through the EPF Members’ Investment Scheme described below) to decide how much harder you would like your EPF savings to work for you through judiciously measured and timed investments in unit trusts. A comfortable, fully funded retirement is at stake, so find out more and make your decision today!

*Source: MAAKL PLANNERS (based on the assumption that his portfolio continues to grow by 5% a year during retirement, while his post retirement inflation runs at 4% a year)


ARE YOU SEEKING HIGHER RETURNS FOR YOUR EPF SAVINGS?

The EPF is the custodian of our hard-earned compulsory savings; the policies it makes affects every working Malaysian. According to EPF’s chief executive officer Datuk Azlan Zainol, “Our contributors’ money is protected. Our priority is capital preservation”
(Source: The Edge, Malaysia; 4 April 2005).

If your personal investment objective is capital preservation, then EPF is the perfect place to keep all your future retirement funds. But if your objective is long-term capital growth, you might want to seriously consider the option granted by EPF to allow you to invest in unit trusts.

SO..WHAT IS THIS EPF MEMBER'S INVESTMENT SCHEME?

Since November 1996, all eligible EPF contributors are allowed to withdraw part of their savings to invest in unit trusts through external fund managers appointed by the Ministry of Finance.

MAAKL MUTUAL is an officially appointed Fund Management Institution that offers the EPF Members’ Investment Scheme. Your investment in this scheme will allow diversification of your EPF savings into many possible investment portfolios.