Boost Your Savings With EPF Account

Boost Your Savings with EPF Account
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In life, everyone has their own financial goals. We all have big dreams we want to achieve, such as buying a house, getting our dream car, or traveling the world. However, we often hold ourselves back from dreaming because we think these ideas are far from reach. The truth is, most dreams can become a reality if we turn them into goals and work towards them. 

When it comes to achieving these goals, there are several options to consider. You can start by opening a dedicated savings bank account or exploring investment plans, which can provide a solid foundation for your savings. Additionally, some individuals have found value in saving through investments in gold and silver.  

By diversifying your investments and savings, the poor performance of one investment can be balanced out by the better performance of another. This helps to achieve a more consistent overall return, minimizing the impact of any single investment's performance.  

But did you know that your savings in EPF is a great example of how your funds can be diversified by keeping them in one place? 

Yes, it’s true! 

EPF uses your savings to invest in various investment portfolios, such as stocks, bonds, and real estate, which helps to diversify your funds and maximise the potential of your returns. By entrusting your savings to EPF, you benefit from our expertise in managing and diversifying your funds, giving you the opportunity to grow your savings over time.

Benefits of growing your money with EPF

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In addition to your regular monthly employee’s and employer’s contributions, you’re also encouraged to take the initiative to boost your EPF savings voluntarily. The best part is that saving with EPF is a hassle-free process, and there are two convenient options available.

 

Voluntary Contribution and Voluntary Excess

These options make it incredibly easy for you to proactively increase your EPF savings and secure a brighter financial future. 

What’s more, the maximum savings amount for Voluntary Contributions has recently been increased from RM60,000 to RM100,000 per year. This adjustment allows you to save more, offering greater potential for achieving your financial goals in a shorter timeframe. 

In addition, Voluntary Excess (VE) is when you or your employer choose to contribute above the statutory rate. All you have to do is inform your employer of your decision to contribute above the statutory rate. This choice simplifies your saving process, as you no longer need to manually save every month. Moreover, it enables consistent savings since the contributions will be made automatically.

 

For example:

Zura, a recent graduate working at an electronics company with a monthly salary of RM 4,500, expresses her desire to contribute more than the statutory rate of 2% (RM 90) per month through Voluntary Excess. This results in a monthly contribution of RM 1,170, and her accumulated savings until December amount to RM 14,040. Assuming a 3% EPF dividend rate for that year, the total dividend received is RM 421.20, bringing Zura's total savings for the year to RM 14,461.20. 

 

Now, consider a shift in the situation if Zura decides to boost her savings by making voluntary contributions of RM 50 every month, the total savings by the end of the year would be RM 13,560. Assuming a 3% dividend rate for that year, Zura would receive dividends of RM 406.80, resulting in her total savings increasing to RM 13,966.80.

*This is for illustrative purposes and the actual dividend calculation method differs. 

Through this example, you can see how the implementation of Voluntary Contribution and Voluntary Excess can increase your savings. This indirectly provides a solid financial confidence for your retirement days. 


Why should you increase your savings with EPF?

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You might be wondering why saving in EPF is a wise decision. This is because, it provides you with a unique advantage of a 2-in-1 approach – you not only can save your money, but also gain a range of additional benefits, including: 

1. Competitive annual dividend returns

We offer compelling annual dividend returns, estimated to be around 3% to 4% in profit, and a possibility for these percentage to further increase. Additionally, for Simpanan Konvensional in EPF, the government guarantees a dividend of 2.5% per year. These dividends play a vital role in boosting your savings, contributing significantly to the growth of your wealth accumulation over time. 

2. Secured investment for your retirement

EPF is a federal statutory body that offers secure and reliable investments. It helps you save consistently for retirement, ensuring financial security in your post-retirement life.

3. Alleviates your living expenses

You have the flexibility to make withdrawals from your EPF savings for a wide range of purposes if you fulfil the conditions. The withdrawal schemes available within EPF includes Housing Withdrawals, Education, Health, and more. For example, Education Withdrawal specifically allows you to finance your educational expenses, such as paying for tuition fees or paying off your PTPTN loans. This grants you the freedom to utilise your savings to meet your needs, leveraging the withdrawal schemes available within EPF. 

4. Enhanced retirement savings   

Your family has the option to make contributions on your behalf through our Akaun Persaraan Top-Up Savings Contribution facility, allowing you to boost your retirement savings beyond your own contributions, hence securing your financial future.

Tip: Learn how to make voluntary contribution.

 

Now, is there any other way to diversify and grow your savings beyond the returns provided by EPF itself? Yes, there is!   

 


Invest in a unit trust

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Investing your savings is a smart choice because it can help you grow your savings faster. However, it's important to assess your comfort level with taking risks before diving into any investment. 

Lucky for you, EPF offers an option for you to diversify your retirement portfolio. 

Our Members Investment Scheme (MIS) serves as an effective method to grow your savings and enhance your retirement funds. With this scheme, eligible members with sufficient savings can transfer a portion of their funds from Akaun Persaraan for investment purposes to EPF-approved unit trust funds. 

Even better, you can do it online via the EPF i-Invest facility in the i-Akaun platform at your own convenience, anytime, anywhere! Have a look at the EPF Member’s Investment Scheme details and eligibility here: 

I Want to Invest


Start saving now to secure a better future for yourself. Regardless of the saving types you choose, it's important to manage your money wisely. By doing so, you can make the most of your savings and pave the way for a financially secure future. 

 

*The information, material or content published are strictly for informational purposes only and shall not be construed as an offer or solicitation to deal in the funds or products referred to or contained in this site.