I have recently been confronted by a friend about the importance of insurance and I was wondering if you could explain the importance of it, yes sure I know a medical card is important but why else other types of insurance are important? would like to know your perspective on this (love the video entirely as it is very informative hope to see you explain this as well as many such as myself believe a medical card is the only tool needed for everyone out there as GOV hospital is not enough due to overcrowding)
EPF savings is a no-brainer, with the personal contribution of RM100K yearly, its getting more attractive. I am now 57 and my advise to the younger contributors, never ever withdraw your EPF until you reach retirement age.
CPF contributions are capped past a salary range of 6.8k as of 2024 which means if you earn more than that no further excess is contributed to your CPF (including employer contribution). Whereas in Malaysia there's no cap, meaning the higher you go, the more the employer pays for your retirement
Thanks for chipping this in! The ceiling will be raised in the coming years too: www.cpf.gov.sg/service/article/what-are-the-changes-to-the-cpf-salary-ceilings-from-1-september-2023
As a Malaysian PR in Singapore, I prefer EPF over CPF. CPF's payout system is inflexible, requiring a wait until 65, which will soon be increased to 67. Its usage is also limited, except for Medisave. Buying a house in Singapore is also very difficult for a PR due to restrictive policies. Allocating 20% of my salary to CPF feels futile since I may never access it. I always believe cash is king. Cash flow and accessible savings is super important due to life's uncertainty. Who will know what will happen tomorrow? CPF is like seeing the money in your account but you never can touch or use it until the day you die. Even you die you also cannot use your money! So I don't understand why people are so happy to see high interest in CPF...such a silly.
you misunderstood CPF payout system, retirement age is not payout age~ CPF is a complex system, in general when you reach 55 and your CPF amount hit FRS, Full Retirement Sum ($205,800 in 2024, this will increase every yr) , you can withdraw the balance~ there's a way half that amount if you pledge your property~ when you reach 65, you can start drawing monthly from the CPFLife, till you die, S$1.6k+ every mth~ if you hit ERS, enhanced retirement sum, which is double of FRS, you will be getting $3k every mth from 65 onward~ If you are below age 55, you can transfer your OA savings to your SA to earn higher interest of 4% on the other hand, EPF is not an annuity plan. you can convert to EPF's i-Akaun though~ if you look at the long term, CPF can cover your retirement~ again, CPF system can't be explained with few paragraph, you can find out more from CPF web~
Why do you want to take out everything? The purpose of an EPF is so you live on the interest. Many makes the mistake of taking everything out then spending everything.
i think EPF will do okay if there is a balance between contribution and withdrawals, along side with prudent risk management. if withdrawals far exceeds contribution, EPF might not have enough liquid funds to satisfy it and had to sell real estates to fund the excessive withdrawals. or, over years, malaysia heads towards a aging population where majority of us are not working, hence much lesser contribution. this will drain out EPF funds at a much faster rate. perhaps one of the reason in budget 2025, EPF is made mandatory for foreign workers to fill in the gap for the lack of contribution to meet the increasing withdrawals of fund... that's my 2 cents of thought.
I had to do several self contributions these past few yrs to increase my EPF amount. I am hoping to secure at least RM70-80k in dividend when I retire (assuming dividend rate is about 5%) 🤞thank you for sharing your findings and thoughts. It's very useful
For MYR, I use EPF annual dividend rate as the min benchmark. Some portion withdrew for UT did not meet this rate. So in recent yrs, I voluntarily contribute more into EPF. When i retire, will keep balance in EPF and withdraw just the dividends annually.
The Govt has in the past many many years ago - dip into EPF to fund all the projects in Malaysia with pittance return. So those days you see low returns due to this. I hope the professional fund managers in EPF stop putting money to crap investments.
EPF should accord a higher dividend rate to senior citizens to reward their loyalty. This is due to massive inflation in the last decade. Inflation helps the younger working population enabling them higher incomes whereas the retired savings in EPF will shrink. 5-6% dividends is not enough to maintain the standard of living and the Govt should mandate EPF to give a higher rate to seniors let's say 8-10% to ameliorate their savings rather than just to give lip service on how to help seniors. This would motivate the younger members to save and not make unnecessary withdrawals.
Bro cannot compare like that la. Return is Return Exchange rate is exchange rate. If you are earning SGD, you put into EPF instead of CPF you will also get higher return mah.
@@theguitaraucostic6964 if you are earning SGD you convert to MYR to put in EPF , EPF generate 6% but SGD appreciate 4%, you exchange back to SGD , you gained 2% only.
@@gabillionaire It does matter. Returns take to account of forex too. No point having 10% returns but forex depreciate 12%. You just lost 2% in purchasing power (without taking into account inflation).
Example: you have 1million in SGD Change to MYR at 3 MYR/SGD. You now have 3 million MYR. EPF gives you 6% in one year, you get 3,180,000 MYR. In that one year, its now 3.5MYR/SGD, you only have 908,571 SGD. Congrats you just became poorer. -- In comparison, You have 1million in SGD CPF gives you 3% in return You now have 1.03 million SGD.
That's why they say, Singapore government is rich but the Singaporean citizens are poor. The government has too many rules to lock the money as though the citizens do not know how to manage thier money. Anyway, Singaporeans are happy considering other factor like exchange rate and systematic cash payout by the government.
Prefered CPF, stability should be the main concern for our retirement. Currently I have 4 accounts in CPF. I am able to withdraw cash from OA and SA (about 60% of my saving in CPF) at any time. MA and RA will let me live well into my later years, worry-free. 🥰
How do we calculate the EPF account in terms of dividend returns if we withdraw money into unit trusts every month? If we sell back the unit trust and put it back into the EPF account.. Is there a way to calculate how much dividends we will get?
Hi, as far as I know (pls verify this) - when you sell the unit trust later and put the money back, only the final balance at year-end will count for EPF dividends. Unfortunately, EPF doesn’t calculate dividends on funds that were withdrawn and returned within the same year-it’s all based on what’s there on 31st Dec.
how much does EPF charge in management fees? is it the same whether they are managing RM1bn vs RM1trn? Because logically you don't need 10x the headcount and infrastructure to manage 10x of assets (economies of scale).
Good question! I believe they do charge that fee, but it doesn’t directly scale with the total assets managed, so the cost efficiency at larger scales may not be directly passed on to members (like us). If I were to guess...it’s likely tied to their overall operational costs rather than a strict % of assets under management.
It's not correct to say that mass withdrawal of EPF funds gave EPF managers little room to invest. It's easier to make 10% return on 100k than on 1 trillion. Mass withdrawals are bad because they force EPF to liquidate holdings for the withdrawal which may be at bad market timing
Yes! "In addition to the Akaun Emas and Akaun 55 initiatives, the EPF is also extending the dividend payment limit to age 100 from the current age 75. This will benefit members who choose to maintain a portion of their savings with the EPF, allowing them to benefit from the compounding effect of receiving dividend until a full withdrawal is made." Source: www.kwsp.gov.my/en/w/no-change-to-age-55-withdrawal-and-introducing-akaun-emas-for-age-60-withdrawal
Nope! If you’re over 60 and running your own business, you’re not required to make EPF contributions anymore. However, you can still choose to contribute voluntarily if you want to keep growing your EPF savings. It’s totally up to you!
if EPF still has 'above 1m' withdrawal, dont see any reason to take out. Can't really get any safer investment while still getting a decent interest return with 0 investment knowledge. All under the assumption things doesnt change much in the future with the policy.
Now working in Singapore is better than before, if you renounced your PR, you can withdraw full sum from CPF, in the past, you need to wait till you turn 50, then you can put those money in EPF😂
If u want ur health care to be sustainable, u should do it in such a way. U c what happened to our gov hospital? Maybe just basic things such as toilets, lifts, carparks...... Health care workers' salary... Therefore, many of them go private a few years later. The ER waiting time longer than Singapore although Singapore also long. The technology cannot upgrade due to lack of money. Innovation and research ......... Everyone should be responsible for their own health. Gov is not a philanthropy
can't deny their limitations can be frustrating. for those interested to read further: www.reddit.com/r/askSingapore/comments/14nz9b6/what_are_your_honest_thoughts_about_cpf/
At 55 yo, I withdraw to pay off my housing loan and the rest I leave it in EPF! I top up occasionally when I have excess cash in hand! I was forced to withdraw my CPF in 2023 when CPF change policy of not giving dividend for my CPF saving! I took my CPF money and put all into my EPF! I rather put my money in CPF than EPF! Lucky we change govt in 2018! If not our EPF would have gone up in smoke!
our kwsp, epf, is the oldest pension fund in the world, it was founded before our independence. yes, cpf copied our model, india copied our model... many retirement fund models bankrupt after few generations, I have no doubt I will stick to mine.
Hi, I’m a Malaysian working in Singapore. I’m thinking to invest more in either EPF or CPF as savings. The SGD currency appreciated more than MYR in the past, what do you guys think about MYR in the future? I think SGD/MYR will be stable at quite some range since Malaysia is getting more investment and better relationships with other countries all over the world which may benefits Malaysia. Should we continue invest more in EPF or CPF?
Citizens and PR only are required to contribute to CPF. Unless you want to take root there, become a PR and park your money in CPF till 65, there are plenty of other investment choice in SG.
CPF better for long term savings but you cannot access it, what's the point? You're just making the government richer and the government show you your bank balance on the screen. Better go with EPF plus your own financial discipline.
If you enjoyed this video, please do hit the subscribe button for more! (help us hit 100K subs so that we can cover more topics for you)😊
I have recently been confronted by a friend about the importance of insurance and I was wondering if you could explain the importance of it, yes sure I know a medical card is important but why else other types of insurance are important? would like to know your perspective on this (love the video entirely as it is very informative hope to see you explain this as well as many such as myself believe a medical card is the only tool needed for everyone out there as GOV hospital is not enough due to overcrowding)
EPF savings is a no-brainer, with the personal contribution of RM100K yearly, its getting more attractive. I am now 57 and my advise to the younger contributors, never ever withdraw your EPF until you reach retirement age.
💯
Let’s hope no more lose making cases like Serba dynamic , FGV and the infamous 1MDB investment , before retirement age . 😅😅
CPF contributions are capped past a salary range of 6.8k as of 2024 which means if you earn more than that no further excess is contributed to your CPF (including employer contribution). Whereas in Malaysia there's no cap, meaning the higher you go, the more the employer pays for your retirement
Thanks for chipping this in! The ceiling will be raised in the coming years too: www.cpf.gov.sg/service/article/what-are-the-changes-to-the-cpf-salary-ceilings-from-1-september-2023
As a Malaysian PR in Singapore, I prefer EPF over CPF. CPF's payout system is inflexible, requiring a wait until 65, which will soon be increased to 67. Its usage is also limited, except for Medisave.
Buying a house in Singapore is also very difficult for a PR due to restrictive policies. Allocating 20% of my salary to CPF feels futile since I may never access it. I always believe cash is king. Cash flow and accessible savings is super important due to life's uncertainty. Who will know what will happen tomorrow?
CPF is like seeing the money in your account but you never can touch or use it until the day you die. Even you die you also cannot use your money!
So I don't understand why people are so happy to see high interest in CPF...such a silly.
you misunderstood CPF payout system, retirement age is not payout age~ CPF is a complex system, in general when you reach 55 and your CPF amount hit FRS, Full Retirement Sum ($205,800 in 2024, this will increase every yr) , you can withdraw the balance~ there's a way half that amount if you pledge your property~ when you reach 65, you can start drawing monthly from the CPFLife, till you die, S$1.6k+ every mth~ if you hit ERS, enhanced retirement sum, which is double of FRS, you will be getting $3k every mth from 65 onward~
If you are below age 55, you can transfer your OA savings to your SA to earn higher interest of 4%
on the other hand, EPF is not an annuity plan. you can convert to EPF's i-Akaun though~
if you look at the long term, CPF can cover your retirement~ again, CPF system can't be explained with few paragraph, you can find out more from CPF web~
You're technically correct - but @wcw19's frustration is also valid from a user POV
Why do you want to take out everything? The purpose of an EPF is so you live on the interest. Many makes the mistake of taking everything out then spending everything.
Hi! Wanna ask that since you're working in singapore, are CPF contributions mandatory like in malaysia?
i think EPF will do okay if there is a balance between contribution and withdrawals, along side with prudent risk management. if withdrawals far exceeds contribution, EPF might not have enough liquid funds to satisfy it and had to sell real estates to fund the excessive withdrawals. or, over years, malaysia heads towards a aging population where majority of us are not working, hence much lesser contribution. this will drain out EPF funds at a much faster rate. perhaps one of the reason in budget 2025, EPF is made mandatory for foreign workers to fill in the gap for the lack of contribution to meet the increasing withdrawals of fund... that's my 2 cents of thought.
Ziet very well researched infovideo! Kudos and many more great stuff coming!
Glad you found it helpful!
I had to do several self contributions these past few yrs to increase my EPF amount. I am hoping to secure at least RM70-80k in dividend when I retire (assuming dividend rate is about 5%) 🤞thank you for sharing your findings and thoughts. It's very useful
For MYR, I use EPF annual dividend rate as the min benchmark. Some portion withdrew for UT did not meet this rate. So in recent yrs, I voluntarily contribute more into EPF. When i retire, will keep balance in EPF and withdraw just the dividends annually.
that sounds like a solid retirement plan!
The Govt has in the past many many years ago - dip into EPF to fund all the projects in Malaysia with pittance return. So those days you see low returns due to this. I hope the professional fund managers in EPF stop putting money to crap investments.
i guess it comes ....as a package?
@@ZietInvests😢
Fashion valet? Haha
will leave money in account till 60. the withdraw everything has led to alot of retirees losing everything very quickly.
EPF should accord a higher dividend rate to senior citizens to reward their loyalty. This is due to massive inflation in the last decade. Inflation helps the younger working population enabling them higher incomes whereas the retired savings in EPF will shrink. 5-6% dividends is not enough to maintain the standard of living and the Govt should mandate EPF to give a higher rate to seniors let's say 8-10% to ameliorate their savings rather than just to give lip service on how to help seniors. This would motivate the younger members to save and not make unnecessary withdrawals.
from where gov gonna get those kind of return? continue sucking blood on cina or t15?
5% - 6% is still higher than FD rate. There won’t be much difference unless you have a big principal sum in EPF.
Great video. What other alternative besides EPF?
Even tho CPF returns might be lower as compared to EPF, but if you compare 10 years decline of the SGD/MYR, EPF has generated much lower return.
Bro cannot compare like that la.
Return is Return
Exchange rate is exchange rate.
If you are earning SGD, you put into EPF instead of CPF you will also get higher return mah.
@@theguitaraucostic6964 if you are earning SGD you convert to MYR to put in EPF , EPF generate 6% but SGD appreciate 4%, you exchange back to SGD , you gained 2% only.
does it matter if I don't spend in SGD? no right
@@gabillionaire
It does matter. Returns take to account of forex too. No point having 10% returns but forex depreciate 12%. You just lost 2% in purchasing power (without taking into account inflation).
Example: you have 1million in SGD
Change to MYR at 3 MYR/SGD.
You now have 3 million MYR. EPF gives you 6% in one year, you get 3,180,000 MYR.
In that one year, its now 3.5MYR/SGD, you only have 908,571 SGD. Congrats you just became poorer.
--
In comparison,
You have 1million in SGD
CPF gives you 3% in return
You now have 1.03 million SGD.
That's why they say, Singapore government is rich but the Singaporean citizens are poor. The government has too many rules to lock the money as though the citizens do not know how to manage thier money. Anyway, Singaporeans are happy considering other factor like exchange rate and systematic cash payout by the government.
Love this channel👏
SG median income is around SGD8k and starting salary is about SGD6k, its good to work in SG and gov making more tax on them
Prefered CPF, stability should be the main concern for our retirement. Currently I have 4 accounts in CPF. I am able to withdraw cash from OA and SA (about 60% of my saving in CPF) at any time. MA and RA will let me live well into my later years, worry-free. 🥰
I like your content bro, very good keep up
Do epf and cpf statement out where they invest, audit and reported? Much worry on out money been miss used like malaysia airline and gbp forex case
To a certain extent, yes its on their official website, but it's kinda on a consolidated basis so you still don't see by companies name
the problem is on myr weak and sgd is strong.
great video but title feels like a bit of a clickbait.. title should more accurately describe video content, EPF vs CPF
How do we calculate the EPF account in terms of dividend returns if we withdraw money into unit trusts every month? If we sell back the unit trust and put it back into the EPF account.. Is there a way to calculate how much dividends we will get?
Hi, as far as I know (pls verify this) - when you sell the unit trust later and put the money back, only the final balance at year-end will count for EPF dividends. Unfortunately, EPF doesn’t calculate dividends on funds that were withdrawn and returned within the same year-it’s all based on what’s there on 31st Dec.
how much does EPF charge in management fees? is it the same whether they are managing RM1bn vs RM1trn? Because logically you don't need 10x the headcount and infrastructure to manage 10x of assets (economies of scale).
Good question! I believe they do charge that fee, but it doesn’t directly scale with the total assets managed, so the cost efficiency at larger scales may not be directly passed on to members (like us). If I were to guess...it’s likely tied to their overall operational costs rather than a strict % of assets under management.
It's not correct to say that mass withdrawal of EPF funds gave EPF managers little room to invest. It's easier to make 10% return on 100k than on 1 trillion.
Mass withdrawals are bad because they force EPF to liquidate holdings for the withdrawal which may be at bad market timing
I think both are acceptable POVs as well. Good point on the mass liquidation
Do we still receive dividends in the Akaun 55 until the age of 100?
Yes! "In addition to the Akaun Emas and Akaun 55 initiatives, the EPF is also extending the dividend payment limit to age 100 from the current age 75. This will benefit members who choose to maintain a portion of their savings with the EPF, allowing them to benefit from the compounding effect of receiving dividend until a full withdrawal is made."
Source: www.kwsp.gov.my/en/w/no-change-to-age-55-withdrawal-and-introducing-akaun-emas-for-age-60-withdrawal
Wait.... if I were to retire & set up my own business past age 60, will I still have to make EPF contributions?
Nope! If you’re over 60 and running your own business, you’re not required to make EPF contributions anymore. However, you can still choose to contribute voluntarily if you want to keep growing your EPF savings. It’s totally up to you!
if EPF still has 'above 1m' withdrawal, dont see any reason to take out. Can't really get any safer investment while still getting a decent interest return with 0 investment knowledge. All under the assumption things doesnt change much in the future with the policy.
can't deny its a pretty solid choice
Now working in Singapore is better than before, if you renounced your PR, you can withdraw full sum from CPF, in the past, you need to wait till you turn 50, then you can put those money in EPF😂
Cpf only applicable for Singaporean and Singapore PR. Not all Malaysian working in Sg are SPR.
💯
I got CPF when I was in Singapore back in the 1988! I am not a PR but I was under the skilled worker category!
@ they have removed it over 20 years already.
CPF medisave is a nightmare for alot singaporean.
why so?
If u want ur health care to be sustainable, u should do it in such a way. U c what happened to our gov hospital? Maybe just basic things such as toilets, lifts, carparks...... Health care workers' salary... Therefore, many of them go private a few years later. The ER waiting time longer than Singapore although Singapore also long. The technology cannot upgrade due to lack of money. Innovation and research ......... Everyone should be responsible for their own health. Gov is not a philanthropy
can't deny their limitations can be frustrating. for those interested to read further: www.reddit.com/r/askSingapore/comments/14nz9b6/what_are_your_honest_thoughts_about_cpf/
Most safe and secure place ONCE we achieve 1M above.
KWSP is the place 😂
💯
At 55 yo, I withdraw to pay off my housing loan and the rest I leave it in EPF! I top up occasionally when I have excess cash in hand! I was forced to withdraw my CPF in 2023 when CPF change policy of not giving dividend for my CPF saving! I took my CPF money and put all into my EPF! I rather put my money in CPF than EPF! Lucky we change govt in 2018! If not our EPF would have gone up in smoke!
It seems like a pretty solid savings choice beyond 55 yo
I prefer "myPF"
keep past 60
hope KWSP dont give away depositors money and call it investment in "darling" companies that reports year after year of losses
Such as Useless garbage that is FashionValet ?? 😂
our kwsp, epf, is the oldest pension fund in the world, it was founded before our independence. yes, cpf copied our model, india copied our model... many retirement fund models bankrupt after few generations, I have no doubt I will stick to mine.
Past 60 yo
long term s&p 500 is king.
💯🤭
If you have extra Rm2000 to park your money for retirement (long term), will you choose epf or spy?
The cost of living is higher than Malaysia
Menyesal amek pencen dgn kewangan skrg
A decade ago i would rather get EPF instead😂😂
Hi, I’m a Malaysian working in Singapore. I’m thinking to invest more in either EPF or CPF as savings.
The SGD currency appreciated more than MYR in the past, what do you guys think about MYR in the future? I think SGD/MYR will be stable at quite some range since Malaysia is getting more investment and better relationships with other countries all over the world which may benefits Malaysia.
Should we continue invest more in EPF or CPF?
EPF
EPF. Not many places in Singapore outside of investment will net you 5-6% annual interest. Even endowment plans in sg give you less than that
Citizens and PR only are required to contribute to CPF. Unless you want to take root there, become a PR and park your money in CPF till 65, there are plenty of other investment choice in SG.
As long the current govt is not corrupt than we are safe for now! Lucky we change govt in 2018! If not our EPF will have goes up in smoke!
You put money in SG Fd better.
My only source of income 😢😢😢
I have no EPF
人在天堂 錢在銀行 花得到的才是你的
😂
Your title does not fit your content…. Why you keep comparing with CPF when it should have only be about EPF for Malaysian ?
CPF better for long term savings but you cannot access it, what's the point? You're just making the government richer and the government show you your bank balance on the screen. Better go with EPF plus your own financial discipline.
Well to be fair SG is very well run & maintained, it comes at a cost i suppose
@@ZietInvests if you're M40 and below, SG is good for you. If you're T10 and above, you can live like a king in MY
Take out epf means dwindling dividends. Epf works only if you don't withdraw more than 5% of your funds once a year.
Ultimate Savings Strategy for EPF? Never withdraw a single cent from it hahaha
and you can contribute more voluntarily anytime
🤣
无比无伤害，
👍
how’s china epf? no need to talk about other countries’ epf 😂