Posted by pkchong > 2023-03-15 11:01 | Report Abuse

I guess we always see the same kind of statement which appear in this article:-

"A bare bones budget of just RM1,500 a month already requires you to have a whopping RM270,000 to support ourselves till we reach 75" (retired at 60)

Also mentioning the compound interest effect in the saving placed into EPF.

Do we missed something? I think we also need to know EPF does pay out dividend up to age 100 for member. This mean if we retired with $360K of saving in EPF at age 55 and above, can live by with $1500 per month, EPF pay out 5% or more per year; we can maintain the income stream forever without reducing "Principal" or base saving in EPF.

$360K with 5% dividend will yield $18K per year which is $1500 per month.

If the dividend is higher than 5% and the monthly withdrawal stayed at $1500, the "money tree" in EPF still grow albeit slowly.