Most people who are approaching the age of 40 would already be looking for investments in order to provide a secure retirement, and some are taking precautions at an even earlier age. If you are living in Malaysia, there are government-sponsored savings plans that offer a guaranteed return, and with more than 16 million members who are all investing in a range of approved ventures, there isn’t a safer way to accumulate savings.
Low Risk – High Returns
If you are looking for a low-risk investment plan, do EPF investment in Malaysia as it is the perfect solution. Formed by the government in 1991, the Employees Provident Fund offers you a very attractive return on your investment, and with a minimum dividend of 2.5%, you have a cast iron guarantee that your investments will produce at least that figure, and often much more. Of course, there are certain requirements, which include a monthly investment of at least 11% of your salary, and an upper age limit of 54, but when you consider that your money is being invested by experts, and they can only do business with approved organisations, there really isn’t another retirement plan that ticks all the boxes.
Looking to the Future
Successive Malaysian governments have had the foresight to come up with a system that empowers public sector employees to effectively plan for their retirement years. This also offers employers a chance to ensure their employee obligations are met, and with their contribution at least equaling the employee’s contribution, you can build up a substantial amount over the years.
Investment Allocation
The EPF Board would approve certain financial instruments that member’s funds can be invested in, which include government securities, land, equity and loans, and with a guarantee of a minimum of 2.5% annually, the dividend is often much better. Optimum returns are always the focus when selecting ways of investing member funds, and by considering a number of factors, including the current and projected economic status, solid investments that perform well are selected.
Dividend Payments
Typically, the EPF dividends are paid to the member’s account annually and would be based upon the savings balance on January 1st of that year, while they can be paid monthly, with the amount depending on your monthly savings figure. Either way, your savings will be steadily accruing, and this means you will be financially comfortable when your retirement arrives.
Any kind of investment has an element of risk to it, and if your financial security is at stake, it doesn’t pay to take any chances, with a government-backed scheme, you have the dependability and business experts are the people who manage the funds on your behalf. There are more than half a million employers who are in the EPF scheme, and since its inception in 1991, the fund has consistently returned good dividends for its members.
If you would like to know more about EPF investments, there are online banks that specialise in this type of investment, and a Google search will put you in touch with the right people.