Why should I invest with my EPF?

Let's have a look at EPF dividend rates for the past 5 years, it has been in the region of 4++% to 5++% for the pass 5 years, in fact for the past 10 years, the rate has been hovering around the same region.

Dividend Rates

Source: EPF Website

No doubt, the EPF dividend is much better than fixed deposit rate, however, it may not be able to beat inflation rate, if you want to know more, you may read my post Why should we invest and get more than 5% per annum?

In another perspective, it is perhaps unfortunate that for most of us, EPF savings is probably our biggest savings, and if you are comfortable with relying solely on your EPF savings for your retirement, do read my post A quick way to estimate how long my EPF fund can last?

If you understand that you need to make your money work harder, welcome to the club :D

How much can we expect to gain by investing using our EPF fund into Unit Trust?

Assuming that you are able to withdraw RM100,000 from your EPF account 1 in stages and you are at age 35, and your investment can clock 10% or 12% per annum, the table below shows the difference

Capital: RM100,000
Age	EPF (5%)	Investment (10%)	Investment (12%)
40	127,628	161,051	176,234
45	162,889	259,374	310,585
50	207,893	417,724	547,357
55	265,330	672,750	964,629
60	338,635	1,083,471	1,700,006

To find out the amount you are eligible to invest through EPF account 1, please refer to my post "How much can I invest from my EPF?"