The Employees’ Provident Fund (EPF) has declared its dividend for 2023. The rate for conventional savings is 5.50% (2022: 5.35%) . It is 5.40% (2022: 4.75%) for Simpanan Shariah. This dividend rate is on par with what I expected.
Dividend history
You may refer to this page (click here) for EPF dividend history.
Its dividend rate is better than the performance of KLCI (-2.73%) in 2023.
Conclusion
In 2022, I was hoping for a better rate in 2023 and the rate is really higher. Let’s hope that EPF would continue to perform well and help to grow our nest egg. As long as the dividend rate of EPF is at least 5%, I am satisfied. Being a safe investment vehicle for retirement, I think it is a wise move to keep the money in EPF to reap the benefit of compounding.
Nonetheless, only 17% of members aged 51 to 55 have achieved basic savings (click here for the news). Basic savings is a pre-determined amount set according to age in Account 1 to enable members to achieve a minimum savings of RM240,000 when they reach age 55. This will ensure that members have sufficient savings at a minimum amount of RM1,000 per month when they retire in order to support their basic retirement needs for 20 years from age 55 to 75, in line with Malaysians’ life expectancy. Thus, basic savings is a bare minimum that a lot of people could not even achieve. This is indeed worrying. It means they cannot afford to retire or they will face financial difficulty if they do not have other assets. Thus, it is important to take action early so that you can have your desired lifestyle during retirement.
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Disclaimer: This post is for informational purposes only. You should use judgment and conduct due diligence before taking any action or implementing any plan suggested or recommended in this article.
