Should you withdraw EPF account 1 money if you are eligible?
Many are very excited about the news of the withdrawal of the EPF account 1 money as it has never happened before. There are something that you shall consider before you apply for the withdrawal:-
- Are you needing it for survival?
The act of EPF authority to allow the withdrawal is to help people who suffer personal cash flow problem. If you are not suffering cash flow problem, resist from withdrawing it. Withdraw only you need it for survival purpose.
- Are you needing it for your business?
Some business owners or self-employed are intending to withdraw the EPF money for business cash flow. At this unprecedented moment, one shall do proper analysis on the business cash flow and the potential of business going forward. Do not risk the retirement money unless the plan is clear with higher certainty to recover the loss. Refrain from being emotional on saving the business but risking your retirement.
- Are you withdrawing it for fast profit?
During MCO period, a lot of scam investment opportunities surface. There are many news shows people are using listed companies to lure people for different type of scam investments. Check out Security Commission website before deciding to put your hard earn saving into such scheme. Some wants to take the money to invest in share market. Share market is volatile. There is no guarantee of winning if no structure game plan in place. Purely listening to investment tips is dangerous. Learn proper skill before investing using the retirement saving. Also, ensure the profits can be higher than the EPF return to optimize your return.
The account 1 is meant for retirement and the research from EPF few years back has recoded that 70% of Malaysians outlive their retirement saving. With the current pace of saving money in the EPF, it has been proven insufficient for retirement In fact, more money needs to be deducted from one’s salary to enhance the retirement saving. If one is still withdrawing the money for reason other than survival, one will most likely suffer from his retirement. If the money is used for business or investment, ensure the probability of winning is high and the rate of return will be higher than EPF return before you make the decision to withdraw the money.
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