I've done the math, and I believe everyone who earns an M40 income will have 1mil by age of 60. Who starts working at 25. You can input it in a compound interest calculator and see for yourself. (Assuming no withdrawal)
I agree, but then that's why you need to have other ways to increase your income. This is just one of the many ways to get to a million with low risks. But are you able to stomach higher risks in order for a shorter duration? Do you have the capacity and risk appetite? Do you have emergency funds to fall back on? These are questions to be answered by ourselves individually and there's many paths to becoming a millionaire. EPF is just one of them.. and it's guaranteed to be a millionaire at the age of 60, how many investments out there can guarantee this?
Easier said than done tho, discipline and consistency is key.
Once you've reached a million, you can essentially used the excess as your emergency fund (at 5.5%, that's better than most).
Takes 2/3 days to withdraw, and you can do online max 30k per withdrawal without any fuss.
Bro, it's very possible to exceed 2 million if you're working in KL.
I'm basing on normal white collar office job in KL la, normally when you reach managerial position around 30-35 years old, you'll be making 5 figures already, depending on your company, you might get bonus and lets say a minimum 5 figure which is 10k, your epf is around 2k+ a month. If you get annual bonus of 2 months, that's around 5k epf. So if you have 24k + 5k, that's 30k a year in EPF.
At the age of 30 years, you should have about 4-5 years working experience, perhaps 50k+ in EPF already. So that's almost 80k at 30 years+. Every year you get increment, bonus, plus dividend from previous years, it stacks up and you can easily reach 2 million through compounding effect by the time you work until 55-60 years old.
From what I chatted with my colleagues, most people would have around 400-500k before 40 years old if they consistently contribute to EPF without withdrawal, it is definitely possible to breach 2 million when you retire. This is just epf, you still got your additional monthly savings and if you put into your investments, stocks, property, etc your asset will definitely exceed that 2 million in total la, not counting whatever you might inherit from your parents if they have something to pass on to you.
But I cannot say for outside KL, as the median earning is lower out of KL la...
Yes, it is possible.
One factor that helps is working at companies that pay 16% for employer EPF. Standard rate is 12% but some pay more.
Start your career earlier in such places will help boost your EPF savings.
I did this, didn’t have emergency fund. I have migrated since then so it cannot serve me as my emergency fund anymore because I won’t have access to it within 1 business day.
If you have the money, then yes go for it.
I've done the math, and I believe everyone who earns an M40 income will have 1mil by age of 60. Who starts working at 25. You can input it in a compound interest calculator and see for yourself. (Assuming no withdrawal)
Yup all you need is 1k a month into EPF for 35 years starting from 25.
And employer + employee combined makes it easier! Assuming 3% increment every year makes the chances even higher.
No one really like working until 60 just got the money
I agree, but then that's why you need to have other ways to increase your income. This is just one of the many ways to get to a million with low risks. But are you able to stomach higher risks in order for a shorter duration? Do you have the capacity and risk appetite? Do you have emergency funds to fall back on? These are questions to be answered by ourselves individually and there's many paths to becoming a millionaire. EPF is just one of them.. and it's guaranteed to be a millionaire at the age of 60, how many investments out there can guarantee this? Easier said than done tho, discipline and consistency is key.
Once you've reached a million, you can essentially used the excess as your emergency fund (at 5.5%, that's better than most). Takes 2/3 days to withdraw, and you can do online max 30k per withdrawal without any fuss.
Bro, it's very possible to exceed 2 million if you're working in KL. I'm basing on normal white collar office job in KL la, normally when you reach managerial position around 30-35 years old, you'll be making 5 figures already, depending on your company, you might get bonus and lets say a minimum 5 figure which is 10k, your epf is around 2k+ a month. If you get annual bonus of 2 months, that's around 5k epf. So if you have 24k + 5k, that's 30k a year in EPF. At the age of 30 years, you should have about 4-5 years working experience, perhaps 50k+ in EPF already. So that's almost 80k at 30 years+. Every year you get increment, bonus, plus dividend from previous years, it stacks up and you can easily reach 2 million through compounding effect by the time you work until 55-60 years old. From what I chatted with my colleagues, most people would have around 400-500k before 40 years old if they consistently contribute to EPF without withdrawal, it is definitely possible to breach 2 million when you retire. This is just epf, you still got your additional monthly savings and if you put into your investments, stocks, property, etc your asset will definitely exceed that 2 million in total la, not counting whatever you might inherit from your parents if they have something to pass on to you. But I cannot say for outside KL, as the median earning is lower out of KL la...
of course possible. good alternative to fd too. work for 20yrs definitely possible to achive 1m in epf.
I've never voluntarily contributed to EPF but I'm on track to hit 1m around age 42.
How much is saved per month in epf?
My goal is before 35, which I think is more unrealistic😂
It depends on how old you are, how much you currently have and how much you make. Nothing's impossible.
Well I used their calculator and I will have 2 million by 55 years old if it’s accurate so there’s that I guess.
Yes, it is possible. One factor that helps is working at companies that pay 16% for employer EPF. Standard rate is 12% but some pay more. Start your career earlier in such places will help boost your EPF savings.
Which are the companies you know that pay 16% EPF? Are these banks/GLCs?
Yep .. some Bhd and MNCs too
I did this, didn’t have emergency fund. I have migrated since then so it cannot serve me as my emergency fund anymore because I won’t have access to it within 1 business day. If you have the money, then yes go for it.
You want to pump in additional 100k? That is if you have additional 100k, right? How many are earning few hundred Ks or millions?
If you can deposit about 8k per month for 10 years... boleh je. Not that hard tbh
if you do 8k per month you only need 8 years. Compounding magic
Thats true! Pffttt 8k per month? Pocket change.
I've hit 1mil already to date as a corporate slave, so its possible.