FAILING to proactively plan for your golden years can lead to monetary woes and emotional distress in the long run.
Worryingly, many people still rely on savings painstakingly gathered through mandatory monthly contributions to the Employee Provident Fund (EPF) over the course of their careers – this has been proven to be insufficient to last a lifetime.
According to the EPF report in 2017, more than two thirds of its members aged 54 had less than RM50,000 in EPF savings and 70% of members who withdraw their funds at age 55 use up their savings in less than 10 years after retiring.
Given the upward trend in the cost of living and inflation rate, your EPF savings may be a good start to retirement planning and there are ways to make your money grow.
In general, there are two ways to help you live comfortably in your retirement years: continue working after the age of 60, or start investing to generate good returns.
When it comes to the latter option, it is beneficial to start as early as you can in your career, as there is more time to accumulate sufficient funds, smaller contributions over a longer period, as well as potentially higher returns from compounded growth.
If you are looking to invest in a more financially secure future, you could choose to invest up to 30% of the total amount in excess of your basic EPF savings in Account 1. That way, you do not have to come up with extra funding for your investments and you also build funds towards the time you need it most.
However, you will need to choose wisely to ensure you reap the potential maximum returns.
With today’s technological advancements, it is safer than ever to take charge of your retirement planning. An option you might want to consider is the EPF i-Invest platform, a self-service online platform where you can maximise your investments in EPF-approved unit trust funds.
Aside from the ease of investing online at your convenience, there are many benefits of investing in EPF i-invest. First is peace of mind, as you will be able to personally manage and diversify your investments according to your risk appetite.
Secondly, it enables you to choose your preferred fund provider. Lastly, you pay low sales fee, with fund houses like Principal Asset Management Bhd (Principal) offering 0% sales charge.
Principal can be your investment partner as it can help you achieve your financial goals. With over 25 years’ experience in Malaysia, it offers over 30 quality EPF- approved funds and is capable to meet different risk tolerance. Plus, you can enjoy 0% sales fee when you invest through EPF i-Invest, with Principal.
Principal is a joint venture between Principal Financial Group and CIMB Group Holdings Bhd, which was established on June 13,1994. Headquartered in Malaysia with footprints across Indonesia, Thailand and Singapore, the company serves over one million investors with RM88.1 billion in assets under management as of December 2019.
The table below shows the Principal featured funds:
Source: Lipper Investment Management; annualised returns based on reinvested dividends Note: Performance of the above funds have been averaged out over a period of seven years. This means that you could possibly see some years that fall short of your dividend goal, while others may far exceed it. However, past performance does not guarantee future returns.
When market sentiments are low, it may be the best time to invest as it presents a good opportunity to diversify your funds into the global market at a reduced cost. Find out more about EPF i-Invest.
There’s no better time to start, as you can kick off with EPF i-Invest in a few simple steps:
Good news, Principal is offering two promotions for you:
1. Jom Dapat Promotion
Click here to find out more about Jom Dapat Promotion.
2. New Investor Promotion
To all the new investors, grab this opportunity to try Principal EPF i-Invest platform and you’ll earn RM50 when you start investing with Principal with a minimum of RM5,000.
To find out more about the New Investor Promotion, click here.