A Guide to a Comfortable Retirement


In these times of rising prices and economic uncertainty, it is no longer acceptable to plan for retirement in your mid-forties, and the sooner you start, the better. Once a person enters permanent employment, their thoughts should be turning to long term investments that will provide the funding for a comfortable retirement, and if you happen to live in Malaysia, the government has a popular scheme to help people invest in their future.

Employee Provident Fund

This is a social security institution that provides retirement benefits for members by investing their savings, and using profitable EPF investment strategies, the returns ensure that members have a secure financial retirement by investing adequate amounts in low risk ventures. As of 2016, there were over 14 million members in this scheme, all of whom pay in at least 11% of their monthly salary, while the employer would pay 13%.

Investment Strategies

The members’ funds are invested in a number of secure and approved financial instruments to generate a profit, and include Malaysian Government Securities, money markets, and land and equity investments.

EPF Dividends

The EPF ensures that your savings perform well, in fact, the fund guarantees a minimum of 2.5% annually, and the dividends are paid into the member’s account every year. This scheme also helps the employer to meet their obligation towards their employees, as the employer’s contribution is considerable. There are also monthly dividends, which are based on the amount of money contributed monthly and are also paid directly into the member’s account.

Free Financial Advice

If you would like to know more about retirement savings plans, there are online banks that offer free advice on all aspects of retirement savings, and with their expertise, you can begin to make progress towards ensuring a profitable investment that will ensure you have a secure retirement. There are also other investment opportunities and by consulting with a financial expert, you will be in a position to make an informed decision about investment for retirement.

Application Process

There are actually 3 ways one can apply for EPF investment, which can be completed online for existing customers, or by mail, or alternatively, you can apply at one of the many branches, whichever is more convenient. Failing that, you can always ask for more information from the bank, who are always forthcoming with advice on any aspect of finances.

Planning Ahead

The best way to ensure a secure retirement is to make plans at an early age, as this gives you more time to accumulate savings, and with some sound investments, your savings will steadily grow over the years. In this world of financial uncertainty, it makes sense to take adequate steps to endure that you have a nest egg for your retirement years, and by investing in a government sponsored scheme, you have the dependability of secure and profitable investments that come with certain dividend guarantees. If you would like to know more about EPF investment, there are online banks who specialise in this form of investment.

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