KWSP / EPF

Kumpulan Wang Simpanan Pekerja (KWSP) or the Employee Proficent Fund (EPF) is a body which governs the Malaysian employee.

Under this fund, the employees and their employers are required to contribute to the account. The fund will be used for investment and the gained profit will be distributed among its contributors. This retirement account may be withdrawn when its account holder reached 55 years old.

I personally have used this account to register my hajj and purchasing my first property. My lack of saving forced me to use this alternative route to apply for pilgrimage. Registration with Tabung Haji to perform pilgrimage requires RM 1,300 balance in ones account while using this method, a KWSP statement to show balance in the contributors account will be sufficient.

Further, KWSP provides others opportunity for its contributors such as withdrawal to pursue higher education.

This account will sure provide a peace of mind to certain level as it provides income when an employee retires. However research shows that up to 70% of contributors will need other resource of income when they retired as this fund will not be sufficient for them to lead a cushion life upon retiring.

Will I be among the 30% when I finally retired in 25 - 30 years?