Great news everyone! EPF has finally declared it's dividend for the 2020 year and at a whopping 5.20%, it is only a touch lower than last year's 5.45% but a lot higher than many conventional savings vehicles, which is pretty good considering the low interest environment we are in now. It was previously mentioned that the EPF board approved a dividend of between 5% and 5.3% for conventional accounts and they sure have lived up to it. Meanwhile, Syariah savings will receive a dividend of 4.9% for 2020, compared to 5% the previous year!
If you are one of the many people that compare EPF's dividends to the returns on the nation's favorite unit trust - Amanah Saham Nasional Bhd, you will be glad to know that EPF has greatly outperformed ASNB's highest return of 4.25%. This is proof that you shouldn't take your retirement savings lightly, especially during times like these, whereby under the many government initiatives, citizens are tempted to take their retirement savings out to spend.
For those that don't know, the Employees Provident Fund (EPF) is an organization that manages compulsory retirement savings for private sector workers to ensure that Malaysian citizens can retire comfortably. For the most parts, it has provided annual returns higher than the other relatively safe investment vehicles such as Fixed Deposits.
I don't know about you, but I'm definitely going to keep up my EPF contributions!
