EPF Dividend for those reaching 55

2 sundays ago I wrote an article for Sunday Star. Below is the article.

Sunday January 27, 2008

Pay high EPF dividend for above-55
THERE were reports stating that EPF contributors aged above 55 would spend all their saving within three years. It is also stated that an average of about RM100,000 are in the account of the contributors when they reached 55.

I would suggest that the EPF board pay a dividend rate of around 10% for the accounts of those contributors aged above 55. This would come to around RM11,000 per year. This amount would be handy for these contributors for they are either now jobless or have their salary and perks reduced if they are still employed.

These contributors can withdraw about RM1,000 per month and leave their savings untouched. It would also not burden their children who would have their own families to take care of.
In this way, these contributors have a steady and reasonable amount to spend and the EPF can still have their savings to invest.