How to calculate EPF investment withdrawal amount?

Although EPF members investment scheme was launched years ago, yet many Malaysians still do not know the existence of it. Follow by next question: "How to calculate the withdrawal amount?". Hope this post can give all of you an insight on this matter.

First, we must know that EPF members investment scheme only allows eligible members to withdraw eligible amount to EPF-approved investment schemes. The schemes was being monitor closely by EPF authorities, by reviewing it every year, in order to protect the interest of EPF members.

Am I eligible?

Members can withdraw up to 20% of access amount from the minimum required Basic Saving in Account ONE. The minimum amount for each withdrawal is RM1,000. Sounds confusing, right? Let's explore it step-by-step.

Step 1:

Determine the age (what is your celebrated last birthday?)

Step 2:

Determine the required Basic Saving in Account 1.

Step 3:

Determine your Current Saving in Account 1.

Step 4:

Applying the formula : (Account 1 - Basic Saving) x 20%

Example of Calculation

Still find it difficult to understand?

Easy. Just register for an EPF i-Akaun (an online EPF account), click on the "Withdrawal" button, then you can view the eligible withdrawal amount for various purposes. It's just that simple and accurate, without calculator. What's more? You can view the withdrawal status and history too.

Related Post: EPF i-Akaun (Series 1)

Related Post: 2012/2013 List of Unit Trust funds for EPF Members Investment Scheme

Source: EPF website

EPF declares 5.8% dividend rate for 2010

For the financial year ended 31 December 2010, Employees Provident Fund (EPF) announced a 5.8% dividend rate. This translates into RM21.61 billion, which is the highest dividend payout amount ever to members, an increase of 11.55% over the 2009 dividend payout of RM19.37 billion.

For the year 2009, the dividend rate is 5.65%. "The remarkable investment income achieved in 2010 was especially driven by the performance of equity investments. The improved financial and economic conditions provided the market with sufficient liquidity, allowing profit taking activities throughout the year", said EPF chairman in statement issued.

Who is the main contributor?

Buoyed by a good year for the equities market, equities were the largest contributor to the EPF's gross investment income in 2010, representing 45.45% of EPF's total gross investment income. (See Table 1)

Source: EPF website

During the year under review, EPF total investment assets also continued to register healthy growth by crossing the RM400 billion mark to stand at RM440.52 billion as at 31 December 2010.

EPF's investment strategies are broadly guided by its Strategic Asset Allocation model which was designed to fit EPF's risk and return profile and to maintain consistent returns in the long run. The year 2010 saw about 2/3 of EPF's total investment assets remaining in low risks fixed income instruments with stable streams of income.

Accordingly, members may check their EPF Account Statement for the crediting of the 2010 dividend, either via EPF kiosks, counters or i-Akaun, from 21 February 2011 onwards.

Source: EPF website

Related Posts:

Revised EPF approved funds effective 1 September 2010

EPF: i-Akaun

EPF i-Akaun

Since EPF go online years ago, many people are disappointed by the way the website was maintained and updated. However, as time goes by, EPF had done a face-lift to its website. If you noticed, I could say that EPF website nowadays is very informative, convenient, well-organized. 

I know, I know, maybe you are saying: “Is it really so goooood ???”
The fact is, I am not a EPF staff, then why I need to praise them?

From now onwards, there will be an EPF series written in this blog.
In this 1st series, I would like to touch on i-Akaun by EPF.

What is i-Akaun?

i-Akaun is a member’s or an employer’s personal account to be used on the Internet, specifically on myEPF portal. By having this account, users are able to access EPF services that are being offered online.

What are the online services offered?
For members:
- View and print account statement for current and previous year.
- View withdrawal status and history.
- View EPF transaction activities.
- Update mailing address and personal details.
- View eligible withdrawal amount for various approved purposes.

For employers:

- Checking and printing the current and previous account statements.
- Checking the EPF transaction activities.
- Access to Form A: Credited contribution archive.
- Checking employee’s EPF number.
- Checking contribution with incomplete information.
- Dividend share calculator for Government employers.
- Registration of new employees.

Wow… How to set up my EPF i-Akaun ?

For members:

1. Visit the Smart Kiosk or Counter to generate your own Activation Code.
2. Then, surf the EPF website to activate your i-Akaun before the expiry date.

For employers:

1. Register i-Akaun for Employer at the EPF website.
2. EPF will e-mail or mail you the details of your Activation Code for confirmation purposes.
3. Visit any EPF offices together with a copy of the e-mail/letter to collect the Activation Code. Please bring the required documents stated.
4. Activate your i-Akaun before the expiry date.

Since you may faced difficulties to locate EPF offices, I suggest you to get it done easily at any of the EPF kiosks which can be found in certain branches of the following bank:

- AmBank
- RHB Bank
- RHB Easy
- RHB Islamic
- CIMB Bank
- Public Bank
- HSBC Bank
- CitiBank
- National Heart Institute
- Permodalan Nasional Bhd

 It’s FREE + Hassle Free. What are you waiting for?

Source: EPF website (http://www.kwsp.gov.my/)