Anita Gabriel, a regular columnist of The Star gives a real insight about the truth on our contributions in the Employee Provident Fund. Did you know that over two thirds of EPF contributors exhaust their retirement funds in less than 3 years of retirement? Scary, huh? What more if contributors cut their monthly contributions by 3 of a percentagepoints in support of the government's recent effort to stimulate the economy.
In recent weeks, there have been suggestions for cuts in employers’ contribution to EPF to alleviate the burden of rising costs faced by businesses amidst waning demand and the general economic slowdown
So having said that, is EPF the best retirement fund scheme? Some analysts say that today's contribution rates are not enough (to sustain us after retirement) and should be increased. Read about what Anita has to say. Click HERE.
For me, I would like as much money in my EPF as I can get. So I filed an application to revert back to 11% contribution (from 8%). I need every single cent of my EPF savings when I retire.
And as Anita mentioned. Malaysia's population is ageing and I think more family is practising one or two child policy. And just like Japan's current ageing population, I don't think any aged parent can really depend on their children for any financial support and that's why whatever and how much you put into EPF is important.
Source: The Star (Business)
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