PETALING JAYA: The annual Employees Provident Fund (EPF) dividend announcement has become something of a ritual for retirees, a moment that can shape how confidently they spend or save for the rest of the year.
“I’ve been waiting with my heart pounding. It should have been announced 20 minutes ago!” said a 58-year-old retired English teacher of a private school, as the clock showed 10.50am yesterday.
The announcement by the EPF was scheduled at 10.30am.
As retired secondary school principal Noraini Hassan put it: “When you no longer have a monthly salary, this is the number you look at very closely.”
“It tells you how careful you need to be for the year ahead,” she said.
Noraini, 67, was among those checking her phone for updates before the 6.15% dividend for conventional savings was confirmed.
Although the dividend is slightly lower than last year’s 6.3%, she described the rate as “steady and reassuring”.
The EPF has declared a 6.15% dividend for conventional savings for 2025, slightly lower than the 6.3% of the previous year, with a total payout of RM67.1bil.
For Noraini, the difference is noticeable but not alarming.
“Of course, when you hear it’s lower than 6.3%, you wish it could be the same or higher. But 6.15% is still strong compared to what banks are offering,” she said.
Noraini relies largely on the annual dividend to cover insurance premiums, utilities and part of her medical expenses.
“I try not to touch my principal funds. I tell myself, spend the dividends first. The capital must last because we don’t know how long we will live,” she said.
Former logistics manager Lim Teng Sim, 68, said the announcement gave him a sense of stability.
“In retirement, you don’t look for thrills. You look for consistency,” he said.
Lim keeps a close watch on his withdrawals and adjusts them according to the returns.
“The 0.15 percentage point drop is small. What matters is that it is still above 6%. That shows the fund is being managed wisely,” he said.
He sets aside part of his dividend each year as a contingency fund.
“Medical costs can surprise you. One hospital stay can wipe out months of planning. So when the dividend is decent, I keep some aside,” he said.
Accounts executive Annie Foong, 59, who plans to retire next year, said the dividend announcement gave her a clearer picture of what to expect.
“When you are approaching retirement, you start calculating everything. You look at your EPF balance and ask yourself if it is enough,” she said.
Foong added that while she had hoped the rate would match last year’s 6.3%, the 6.15% return still boosted her confidence.
“It shows the fund is still generating solid returns. That gives me some comfort as I prepare to retire completely,” she said.
However, she acknowledged growing concerns about the rising cost of living and healthcare.
“The dividend is encouraging, but it also reminds me that I must manage my withdrawals carefully. Once you retire, there is no second chance to rebuild your savings,” she said.
