Have you ever thought about what your life will look like after retirement? With the rising cost of living and an increasingly dynamic work environment, planning for retirement is no longer optional; it’s essential.
This is where the Employees Provident Fund (EPF) becomes your strategic partner, providing a solid foundation for financial security. It offers attractive dividend rates, a range of facilities and retirement benefits, and long-term protection for a more secure future.
How can I grow my savings with EPF?
A common misconception is that your EPF savings can only grow if you earn a higher income. While income does play a role, there are several ways to further grow your funds and maximise your retirement savings with EPF:
Voluntary Contribution
In addition to mandatory monthly contributions, you can voluntarily top up your EPF savings with amounts as low as RM10, up to a maximum of RM100,000 per year.
By starting your savings journey early, you can take advantage of the power of compounding, allowing your contributions more time to grow. This supports both short-term financial resilience and stronger retirement benefits in the long term.
i-SaraanÂ
Have you heard about i-Saraan? It’s tailored for members aged 60 and below who are self-employed or have no fixed income. Through i-Saraan, you can make voluntary contributions and receive a government incentive of 20% of your contribution, up to a maximum of RM500 per year and RM5,000 throughout your lifetime. This option is ideal for gig workers or those employed in the informal sector.
With the upcoming i-Saraan Plus, set to be introduced under Belanjawan 2026, e-hailing and p-hailing drivers will enjoy additional incentives to boost their retirement benefits. Stay tuned for more details!
Read also:Â 4 Benefits Of Belanjawan 2026 EPF Members Should Know About
Benefits you can expect to receive as your money grows with EPF over time
Dividend EarningsÂ
The EPF declares annual dividends of around 3% to 4%, with the potential for higher rates. For Simpanan Konvensional, the minimum rate is set at 2.50%, while Simpanan Shariah offer returns fully derived from syariah-compliant investments. Over the long term, these dividends help grow your savings, thereby strengthening your retirement benefits.
FlexibilityÂ
The EPF recognises that each member has different financial goals and religious beliefs. Thus, offering a choice between Simpanan Shariah and Simpanan Konvensional. With Simpanan Shariah, returns are derived solely from investments in accordance with syariah principles, while Simpanan Konvensional involves a mix of syariah-compliant and conventional investments.
This flexibility allows you to align your investments with your personal values while optimising retirement benefits through tailored wealth accumulation options.
Read also:Â Make Simpanan Shariah Your Choice of Retirement Planning
Tax ReliefÂ
Your savings in EPF are tax deductible up to RM7,000 per year, subject to periodic amendments by the government (excluding relief for life insurance premiums). In addition, dividends from EPF investments are also tax-exempt. These benefits help your retirement savings grow more efficiently, while giving you greater flexibility to plan your finances effectively.
Read also:Â Understanding Tax Relief For EPF Members
Financial literacy and retirement support
Beyond savings, the EPF also aims to support members in making informed financial decisions. The Relationship & Advisory (RA) offer complimentary consultations to guide you in understanding your goals, evaluating your current situation and planning effectively for a secure retirement.
You can also access a wealth of financial literacy resources, including articles, podcasts, and infographics, on the EPF website. These tools equip you with the knowledge to make the best decisions for a more comfortable future.
Ultimately, the EPF is a smart and reliable choice for retirement planning. Make it a key component of your savings strategy to ensure financial security and enjoy a more comfortable life after retirement. Start your EPF savings today!
