March 19th, 2009 
DianaFinally after almost 3 months, KWSP declared 4.5% dividend for its contributors. The Employees’ Providend Fund (EPF) or Kewangan Simpanan Pekerja (KWSP) declared a dividend of 5.7% in 2007. It is still better than Fixed Deposits rates which are now a meagre 2.5% for 3 months or 12 months. So it is still better to keep your savings in EPF and contribute more if you can afford. Last month, I have signed a form from KWSP to contribute 50% of my income to EPF for more returns since I have spare cash to keep. This is part of my retirement plan to have sufficient savings in my golden years to tide me through the years. In a while, I will be going down to KL for business and will be back 1 or 2 days later.
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Contribute 50%? Can we do that? I thought only 11% max from employee.
Jayce: yes, we can contribute up to 50% of our income for our golden years savings and you have to fill in a form to state that you wish to contribute up to this percentage. However, when I check the KWSP online, the contribution for last year was only 4.12% and not 4.5% as stated in the press.
First I’m seeing people stating EPF actually does offer reasonable dividends.
I have to agree to. Especially when it used to be compared to the Mutual Funds previously, I believe during downturns, EPF is more ‘appreciated’ as it is capital guranteed with decent dividends.
el: yes, EPF is for our golden years savings.
I understand EPF stopping paying dividend to members after age of 75.
I am appealing on behalf of those who like myself will not receive any income from EPFund , to reconsider its decision on the following grounds:-
- EPF original aim is to provide some income to support members during
their twilight years. The stipulated age of stopping payment of
dividend, I believe was not mentioned in the Act until recent
amendment.
- At age of 75 how do we oldies know where to put our money for
investment purposes in order to earn an income. If we do not do
that our EPFund will run out before our life time. At this critical
period – a few more years we die, when our fund runs out, where do
we have money to survive. We become destitute towards the very
end of our life. The original good intention of EPF was to avoid
members become destitute. Now, the present board seems to go
against the original spirit of its founders. I hope the board members
will get a chance to read my appeal and reinstate the payment of
dividend at least up to the age of 80 or 85. Many of the oldies if
become destitute tend to fall into depression and this is indeed very
cruel way to end its life.