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Hey Gen Z! Want To Make Your Retirement Money Work For You? Here’s How

Hey Gen Z! Want To Make Your Retirement Money Work For You? Here’s How

EPF i-Invest is a simple and smart option for Gen Zs to diversify their retirement portfolio and enhance their savings.

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Retirement may seem like a distant dream for Gen Zs. As the new kids on the block, many of you are just entering the workforce and taking your first steps towards financial independence.

But trust us when we say you need to start planning for your retirement right now! A survey by Ringgit Plus shows that many of you Gen Zs out there are saving less than RM500 a month, BUT are spending more than you earn.

Why you ask?!

According to the Employees Provident Fund (EPF), only about 3% of contributors can afford to retire comfortably, while some tend to fall into poverty before they even reach retirement age.

The Finance Ministry also says that you gotta’ save up to RM240,000 in your EPF by the time you’re 55, so you can live on at least RM1,000 a month for the next 20 years when you retire.

(Credit: jcomp via Freepik)

That’s a lot of pressure, right?

But as a Gen Z, you have the advantage of time, technology, and the opportunity to make early investments towards your future to retire like a boss!

Investing is not just for old rich people with deep pockets. It is for everyone who wants to secure their financial future and achieve their dreams. Of course, investing is not a one-size-fits-all game, and what worked for your parents or grandparents may not work for you.

For example, buying property used to be a great way to invest and make money, but now it’s harder, more expensive and also frowned upon by many who feel that homes are meant for living and not for investing.

There’s also the trouble with all those sketchy and unregulated Ponzi-type investments, forex trading, multi-level marketing, get-rich-quick schemes and confusing cryptocurrencies to tempt young people into throwing their money away for a quick buck.

Fortunately, there is a simple and smart option for Gen Zs to diversify your retirement portfolio and enhance your savings.

Make your retirement money work for you?!

(Credit: drobotdean via Freepik)

If you want to grow your retirement savings and achieve your financial goals then check out the EPF i-Invest, the online self-service platform that lets you invest in unit trusts with ease and convenience.

With EPF’s i-Invest, you can leverage your EPF savings to invest and grow your retirement nest egg and make your retirement money work for you.

What is EPF i-Invest?

EPF i-Invest is a platform under the Members Investment Scheme (MIS) that lets you move some of your money from Account 1 and invest it in unit trusts from EPF-approved FMIs (Fund Management Institutions), like Unit Trust Management Companies (UTMC), Asset Management Companies and Institutional Unit Trusts Adviser (IUTAs).

(Credit: EPF)

How does it work?

Here’s the deal: the way your EPF is set up is for you to achieve at least RM240,000 in your Account 1 when you turn 55. 

This is according to the Basic Savings table reflective of your age until you’re 55.
(Credit: EPF)

With i-Invest, you can move up to 30% of the extra money in excess of your Basic Savings schedule in your Account 1 and invest it in EPF MIS to grow your retirement funds.

As long as you have enough extra money in your account, you can invest at least RM1,000 in different unit trust funds and FMIs appointed by EPF with as low as 0% upfront sales charges.

If you’re too lazy to do the math, the EPF website has a calculator to help you figure out how much money you can move from your EPF savings for investment. Check it out here.

Investment applications can be made through your preferred FMI agent. But it’s way easier to do it online through EPF’s i-Akaun (Member) website and mobile app (classic version) because the EPF i-Invest platform gives you a reliable, safe and convenient way to manage your investments in approved unit trust funds and portfolios.

The platform has tons of features and helpful info to help you make smart investment decisions. You can easily keep track of multiple portfolios and consolidate your investment holdings with detailed breakdowns, as well as, perform unlimited transactions anytime and anywhere.

With EPF i-Invest you can purchase up to eight unit trust funds from a maximum of five FMIs in a single buy transaction via IUTAs.

With EPF i-Invest, you can invest for your future with efficiency, flexibility and low fees because the initial sales charge is only up to 0.5% through i-Invest, compared to up to 3.0% through agents.

(Credit: EPF)

So don’t let your money just sit idle. Put it to work and make it grow with EPF i-Invest!

However, do keep in mind that just like any other investment opportunity, investing through EPF i-Invest still carries its risk. You should always do your research before buying any investment product because, at the end of the day, it’s your money and it’s up to you to spend it wisely.

But to help you get started, here are some useful tips to help with your i-Invest journey:

  1. The market is unpredictable and can go either up or down. So don’t go all out and invest all in one go: spread it out and invest it a bit at a time. This is called dollar-cost averaging, and it can help you not lose your hard-earned money.
  2. You should never just pour money down the drain with the hopes of striking it rich. Dig in and do some research before you invest! Use EPF i-Invest tools to find the best funds and portfolios for you and keep track of your investments to see how they do over time. It’s a great way to evaluate risks and tailor your investments to your goals. 
  3. Keep an eye on those fees! They may look small, but they can eat up your returns. Picture this: you’ve got a fund with a 6% gross annualized return, but with an initial sales charge of 3% and an annual fund management fee of 1.5%, your net annualized return will be less than 3.9% after five years due to the charges incurred. Take, for instance, someone who starts with RM1,000 – instead of ending up with RM1,338 (at a 6% annualized return), they’re looking at RM1,210 all because of fees. Not nice kan? You can find all the info on fees and sales charges on the EPF i-Invest platform, so you know what you’re paying for. 

With these words of advice in mind, you’re ready to take your first steps towards financial independence and a more fruitful retirement life. Click here for more information on EPF i-Invest and who knows, maybe you’ll get to retire sooner than you think. Happy investing!

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