Cpf vs epf: 2.5% vs 6.75%

[makapaaa]

[h=1]CPF VS EPF: 2.5% VS 6.75%[/h]
Post date:
10 Feb 2015 - 4:39pm








EPF pays 6.75% dividend
According to the Straits Times news report “Malaysia’s EPF to give 6.75% dividend” (Feb 9) – “Malaysia’s Employees Providend Fund (EPF) has declared a 6.75 per cent dividend rate for 2014, the highest rate since 1999.
EPF real rate of return 4.11%
The dividend declared for 2014 is equivalent to a rolling three-year real returns of 4.11 per cent over inflation.”
CPF real rate of return -0.1%
In contrast, the real rate of return on our CPF Ordinary Account interest rate of 2.5 per cent, was negative, at -0.1 per cent per annum for the last three years, becauseinflation was 2.6 per cent per annum.
EPF rate of return was 4.25 to 6.75%
The EPF’s dividend rates ranged from 4.25 to 6.75 per cent from 1999 to 2014.
Dividend Rates

Year Per Annum 1952 – 1959 2.50 1960 – 1962 4.00 1963 5.00 1964 5.25 1965 – 1967 5.50 1968 – 1970 5.75 1971 5.80 1972 – 1973 5.85 1974 – 1975 6.60 1976 – 1978 7.00 1979 7.25 1980 – 1982 8.00 1983 – 1987 8.50 1988 – 1994 8.00 1995 7.50 1996 7.70 1997 – 1998 6.70 1999 6.84 2000 6.00 2001 5.00 2002 4.25 2003 4.50 2004 4.75 2005 5.00 2006 5.15 2007 5.80 2008 4.50 2009 5.65 2010 5.80 2011 6.00 2012 6.15 2013 6.35 2014 6.75

CPF vs EPF
If you started with 10,000 in 1999 and contributed 500 a month, it would have grown to 180,380 now.






In contrast, at the estimated three per cent weighted average rate of our CPF accounts – it would only grow to 139,480.
This is a difference of 40,900 or 23 per cent in just a 16 year period.
Our CPF had the lowest real rate of return among all national pension schemes in the world since 1999.
No other national pension scheme in the world keeps so much of the returns for the Government, at the expense of the citizens. In fact, no national pension scheme keeps any of the returns from the citizens at all.
“Robbed”of a million?
In a lifetime – the difference between the EPF rates and our CPF rates is easily a million difference for the average worker (“Earn $1,000 – CPF “robbed” $1 million?“, The Real Singapore, Dec 27).
And of course in Malaysia you would be making your EPF contributions in ringgit (RM) and the lower cost of living.

Win battles lose war
TRS Contributor

 

[xpo2015]

Did you account for the lost of exchange value?

 

[Froggy]

Heard Malaysia is in serious financial trouble

 

[eErotica69]

Did you account for the lost of exchange value?

You can ask this question again!

 

[eatshitndie]

what's the use of a higher return when the currency it is denominated upon is becoming worthless?

 

[winnipegjets]

what's the use of a higher return when the currency it is denominated upon is becoming worthless?

How is it worthless when you can buy essentials cheaply?

Its purchasing power is reduced only when spent on imports.

 

[winnipegjets]

Heard Malaysia is in serious financial trouble

Najib makan lots of dough and got caught.

Don't worry, Kazanah got dough to bail the country out.

 

[frenchbriefs]

If you had invested in the EPF over the decade and kept your savings in ringgit, you would be crying buckets today. With each passing year, the Sing dollar is appreciating against the ringgit. At this rate, we would be treating the ringgit like the ruppee or thai baht.

can somebody calculate if u put 100k ringgit into the epf back in 1955 and 100k SGD into CPF back in 1955 what would be the balance today.....i have a feeling with the higher compounding interest the difference would be exponential.even a 1 percent difference in interest growth rate is drastic difference over a period of 20 to 30 years......

i calculated using a compound interest calculator if u invested 100k in a fund yielding 2.5% interest over 50 years vs a fund yielding 6.5% interest p,a.at the end of 50 years u will have 330k versus 2.3 million......a difference of almost 600%.even after accounting for currency difference,it is clear which fund is far far superior.

it would take lots and lots inflation and the malaysian economy to shit itself over and over before the epf could even be as bad as cpf.

 

[eatshitndie]

How is it worthless when you can buy essentials cheaply?

Its purchasing power is reduced only when spent on imports.

very soon the cuntry will be bankrupt and their currency will worth a little more than toilet rolls.

 

[frenchbriefs]

Dont forget not only will you be a multi millionaire if u invested in the epf,the purchasing power of mudland is ultimate IMBA compared to sinkieland.in sinkieland a 3 piece meal at kfc with a cheese fries cost u a whopping close to 10 usd.in malaysia the same dollars will buy u a bucket of 9 piece chicken with 2 large sides for your kampong family.if u cash out ur epf after 50 years,the 2.3 million ringgit can buy u a sultan palace with gravel driveway and a Sikh security guard.if u cash out ur cpf after 50 years u would be lucky if ur not sleeping on a bench at east coast park.

 

[winnipegjets]

very soon the cuntry will be bankrupt and their currency will worth a little more than toilet rolls.

Remember the 1998 financial crisis ...they weather through it better than all other countries. Why?

 

[Leongsam]

Dont forget not only will you be a multi millionaire if u invested in the epf,the purchasing power of mudland is ultimate IMBA compared to sinkieland.in sinkieland a 3 piece meal at kfc with a cheese fries cost u a whopping close to 10 usd.in malaysia the same dollars will buy u a bucket of 9 piece chicken with 2 large sides for your kampong family.if u cash out ur epf after 50 years,the 2.3 million ringgit can buy u a sultan palace with gravel driveway and a Sikh security guard.if u cash out ur cpf after 50 years u would be lucky if ur not sleeping on a bench at east coast park.

The problem with you is that you have an extremely insular outlook.

Unless you're planning to live your whole life in the same kampong, surely a strong currency with low returns beats a weak one with higher returns.

The strong SGD has enabled me to cash out of Singapore many times over. Had I been a Malaysian with all my assets in Ringgit, there is no way I'd be living the life I enjoy today.

 

[eatshitndie]

Remember the 1998 financial crisis ...they weather through it better than all other countries. Why?

the most they can do is impose currency controls and outflows including runs on local banks. and this time there're no soros nor jews to pin the blame on. the fiasco is solely their own doing. they will need a madhatter to rescue them again.

 

[frenchbriefs]

The problem with you is that you have an extremely insular outlook.

Unless you're planning to live your whole life in the same kampong, surely a strong currency with low returns beats a weak one with higher returns.

The strong SGD has enabled me to cash out of Singapore many times over. Had I been a Malaysian with all my assets in Ringgit, there is no way I'd be living the life I enjoy today.

Strong currency often correlates with lower purchasing power while weak currency often correlates with stronger purchasing power.after all u are paying for your goods and purchases with a more valuable and smaller currency.having a strong currency is bad for the consumer cause they are paying more for goods and services rendered but its good for businesses.say I go to australia and set up a business,I sell a stupid aussie a hunger buster box containing 3 pieces of fried chicken for 10Aud.this arbitrage just earned me 9 bucks profit cause I bought the chicken from china and malaysia for 3rmb or 3 ringgit which is less than 1 AUD.if I took the same chicken and sold it in malaysia kfc for 12RM my profit willbe garbage.the only way I can increase my profits is to pay my workers garbage.which is what is happening to sinkies.strong currency and low returns is like a double spiked dildo for consumers.

 

[frenchbriefs]

The problem with you is that you have an extremely insular outlook.

Unless you're planning to live your whole life in the same kampong, surely a strong currency with low returns beats a weak one with higher returns.

The strong SGD has enabled me to cash out of Singapore many times over. Had I been a Malaysian with all my assets in Ringgit, there is no way I'd be living the life I enjoy today.

And please stop using the example of you moving to nz,the sun does not rise in the east and economics does not work that way simply because u moved your stupid assto australia and cashed out ur cpf.

 

[Leongsam]

And please stop using the example of you moving to nz,the sun does not rise in the east and economics does not work that way simply because u moved your stupid assto australia and cashed out ur cpf.

People can move anywhere.

A Singaporean can cash out and move to Malaysia, Thailand, Vietnam, EU etc.

A Malaysian with his banana currency is stuck at home.

Only a fool would live his whole life in the same shoebox.

 

[Hans168]

datz how TH n GIC got so rich......... all at expense of our 5% which shud be paid to us additionally over these years compounded!! Astronomical sums........ which need Ho Ching 3 months to calculate????? No???

 

[johnny333]

Malaysians get to withdraw their EPF at 55 while Sporeans have to wait 10 years latter. If you are dead what is the use of CPF

 

[Leongsam]

Malaysians get to withdraw their EPF at 55 while Sporeans have to wait 10 years latter. If you are dead what is the use of CPF

What's the point of withdrawing funds which are worthless?

 

[TracyTan866]

Did you account for the lost of exchange value?

Interest rate is paid on principal. Exchange rate is irrelevant