How EPF Account 3 Will Affect Malaysians?

KWSP has introduced a *New* Account named Akaun Fleksibel for Malaysians and it is free to withdraw anytime. But how will this affects Malaysians? Does it has a different dividend rate? Let's find out in this video!

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#malaysia #mrmoneytv #kwsp #epf #malaysian #news #finance

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Disclaimer:
This is not an investment advice. All content produced is solely for education and entertainment purposes only. Please consult your financial advisor before making any investment decision.

[Anonymous-jsjn]

I do not recommend people who lack investment knowledge to take money out from EPF to invest elsewhere. Let the Pro do the job for you. Yes, you will hear a lot of these financial agents or friends encouraging you to take money out. Because you do not have knowledge nor time to manage, you'll end up not making in fact losing your hard earned money if you aren't careful. While EPF returns hovers around 5% yearly, you are sure that your money is safe. When you lose money in your investment, your friend and that investment agent isn't going to be able to get you those money lost. Just don't be greedy. Just my 2 cents.

[axeltech]

I'm 25 year old and got a decent amount, didn't withdraw a single penny worked hard and hope it grows.

[AhLum]

If you can manage and know to invest, stop lost and self-control, have forseen a better opportunity, why not withdraw? But before withdraw, just think twice if you can achieve better return than epf 5% average.

[alisonlsc]

1:23 min, Below RM 5K employee 11% employer 13%. Above RM5K employee 11% employer 12%

[grahamashe]

For developing countries with potentially weak and falling currencies, keeping that much money locked in for decades might result in much lower purchasing power at the end. Therefore, being able to withdraw more now (and perhaps invest it elsewhere) could be better for some people. [Edit] I should add that withdrawing the money now to purchase something that you need or really want could also be a good idea if in two or three years the cost could very well go up from say, RM 2000 to RM 2800. This is because the EPF returns cannot compensate for real inflation AND the devaluation of the currency on the global stage. Not to mention the risk of hyperinflation. Even salary adjustments will be of no benefit to those already retired or close to retirement.

[nicholastam]

Shrinking work force already started, and it is not because of low birth rate. Most graduate dont have intention to stay in Malaysia. A big portion of malaysia professional work in Singapore for better salary and career prospect. Thus, EPF already experiencing lower monthly contribution while seeing higher withdrawal.

[donaldchee]

Good for your emergency fund i.e. 3-6 months of salary in case you get laid off. From there, any excess can go into investment. The cycle continues. Just spend below your means lah

[highend]

Lower birth rate will happen to every industrialize society. But unlike others developed country, we had a very large size unintegrated labor force, point is only do we want to include them..

[MiseryBearAndFriends]

Why do I want to keep the Malaysian ringgit as the value is so weak? I’d rather withdraw and buy property or invest in some other instrument which can give higher returns. The ringgit is a joke and turning worthless.

[suanchim]

I'm not Malaysian and was a bit confused by the final minute of the video. From what you have described, the EPF system is a collection of individual retirement accounts, like savings accounts, and you are only able to withdraw what you have saved. This is unlike a pooled pension system, where all contributions go into a central pool before a portion is re-distributed to retirees as say, annuities. If it's not a pooled pension system, even if the total of individual withdrawals exceed total of individual deposits, there should not be a problem, because everyone is basically funding themselves, not funding others. Or is your worry that without a critical mass of funds, EPF will be unable to achieve good returns and dividends for all members as good returns often require substantial investment?

[xygdra]

Yolo, covid i took out 15k to buy stocks, already doubled and put back 16k in 🙂 i can only imagine how much the rich people made out of covid

[Humorousguy]

Well . Theres a limit for withdrawal...so should not affect the retirement money.. i just know that many of us dont even can save for holidays ...so is a chance to draw out a little for enjoyment as is our own money also ..just draw out if needs..

[alexaez]

My friends withdrawal EPF to enjoy life - they withdrawal RM30k during previous government - now RM30K less in their EPF account - love to see how they would cope after their retirement

[SaadonAksah]

The flexible account is great as an emergency account 👍

[ahhou]

12:32 somehow i felt like this wasn't financial advice, more like father's advice 🤣

[ect]

I am wondering about the compounding effect for leaving acct 3 as it is versus actively move all amount on acct 3 to acct 1. I read there is one way option to transfer from acc 3 to acc 1 but yet to be available.

[clarencewong]

Actually Mr Money, I've noticed that EPF has started reducing its holding position on some key glc stock counters which they are a significant shareholder.

Probably indicating stress on their cash flow...

Most probably to fund withdraws for Acc 3.

As you have highlighted, 10-15yrs from now, it will get harder. Our EPF and politicians will probably take the route of SG, by increasing retirement age and full withdrawal age...Personally I think all Malaysian will do well to pick up skills to manage their own money and rate of returns. Unfortunately these skills are not taught in school.

[aimanashrafmz]

Malaysians are not ready for retirement. It's very scary looking at the statistics.

[CyChong-vmuf]

Peter, if epf is dependent on new contribution from young population to pay retirees, isn’t that a ponzi scheme? Epf should be able to pay the contributor, without depending on new contribution rite?

[muhdsyahir]

if balance in ur epf is high, i think withdrawing money from epf is a bad move even if ones put it on better returns bc the capital inside epf is still much higher hence giving u better return.