Contributors hope to grow their retirement nest egg

PETALING JAYA: Contributors are hoping for a higher dividend payout by the Employees Provident Fund (EPF) this year to grow their retirement nest egg.

Jeremy Koh, 56, who holds both the Emas and conventional savings account, is hoping for a higher dividend as it will benefit both accounts.

“As a person who is above 55 yet still employed, I am looking forward to a much higher payout by EPF. This will only help whatever existing funds that I have in EPF, which I am leaving there because it is giving a very stable yearly payout which I have the freedom to access,” said the engineer.

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Koh has decided not to take out any more funds from EPF, which he believes can provide stable and high returns.

A business development executive who only wanted to be known as Jackie, 43, is also hoping for a higher dividend for the sake of her retirement.

“I wish to be comfortable and self-sustaining in my golden years. I have no plans to withdraw from EPF before my retirement unless it’s really necessary, such as having to pay for an emergency surgery,” she said.

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Financial adviser Yimie Yong, 38, is hoping that the dividend for 2023 will be higher than average.

“Given the inflation in recent months, for food especially, and the shrinking of the ringgit or the devaluation of the ringgit against the US dollar and other currencies, we can really feel the pinch and our purchasing power is significantly decreasing,” said Yong, who plans to withdraw from her EPF account to buy property in the near future.

NGO employee Leah Jean, 36, said that while she has no specific hopes for the upcoming dividend, it would be welcome news if it turns out to be the highest payout ever, as predicted by several economic experts.

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“As of now, there’s no immediate reason to withdraw the money. I have savings that are more accessible than EPF.

“Hopefully, I wouldn’t ever be in a position where I have to withdraw EPF funds before my retirement,” she said.

Jordan Abdullah said he had read some reports saying that the upcoming dividend payout could be as high as 6% and is hoping that this is true or even higher.

“With a higher dividend, it will surely help my savings grow bigger and achieve my retirement plan,” said the 28-year-old.

“I will leave the money in my account until my retirement as we do not know what the cost of living will be in the next few decades. There was also a report saying I need at least RM2mil for retirement and that’s a lot.

“Unless there are any urgent matters that require me to withdraw the money, then only will I do it. For example, to pay for property or healthcare,” he added.