PETALING JAYA: Malaysians are generally satisfied with the 5.5% dividend declared by the Employees Provident Fund, saying that it has provided them with reasonable and stable rates of returns over the years.
However, many were also hoping for the dividend to be higher this year.
Managing director Philip Victor, 54, said the 5.5% dividend rate was good and higher than the 5.35% declared last year.
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“Probably because it was speculated to be around 6%, I was expecting a little more but 5.5% is not too bad,” he said.
Victor, who has been making EPF contributions for over 30 years, said while it was good to spread out his investments, the fund guaranteed a reasonable dividend.
“I haven’t decided on what I’ll do with my EPF savings when I reach 55 but I will probably withdraw in stages,” he said.
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Engineer Jeremy Koh, 56, said the 5.5% dividend was within expectation.
“Anything higher would have been nice and an added bonus. A 5.75% dividend would have been welcomed,” said Koh, who will be taking out part of his EPF savings for his daughter’s education.
He said he would continue to maintain a major portion of his savings with EPF as it had stable returns compared to other investment instruments.
Zuriani Idris, 48, said she was satisfied with EPF’s latest dividend distribution, adding that it was higher than that of Amanah Saham Bumiputera (ASB).
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“This would surely help me increase my savings. The returns will help me prepare for my retirement,” said Zuriani, who is from Kuala Lumpur.
She said upon reaching the age of 55, she would prefer monthly withdrawals from EPF as opposed to a lump sum.
“But this all depends on my career. If I can grow my income, I might consider withdrawing it all at once,” she added.
Business analyst Charles Lee, 25, said although he was satisfied with the dividend rate, he doubted whether it could help preserve his savings against inflation.
“The rate is more or less expected, and is in line with the average over the past 10 years,” he said.
He said it was essential to contribute to EPF, especially for those around his age who are starting out in their career and learning about financial literacy.
“It forces us to be disciplined with our spending and it’s generally a great tool to help us save for retirement.”