Can you take out all your money from Epf once you reach 55?

Technically yes.

However, just because you can withdraw all your money from Epf, doesn’t mean you should.

I understand the temptation. Especially when you see a big sum of money and feel that you deserve to spend it as you have worked all this long. But I would say that withdrawing all your money without a proper plan is a poor financial decision.  And don’t simply keep the money at savings or current account. Not only the money doesn’t grow, it will be spent like water flowing down a tap! (bak kata Hj Badrol)

In average, people retire at the age of 55 to 60 ie. Upon retirement, they have up to 30 years to live till the age of 85. (Don’t forget that Tun Mahathir became the second PM at the age of 93 ya).  Hence, you are responsible to make sure your money is sufficient to last for 30 years.

So how to plan should you have only Epf money upon retirement?I would recommend the following:


8 -10% : for a year usage (daily commitment)

20%     : to save in Asb / Tabung Haji (at annual returns 5 – 7%)

20%     : to invest at mutual fund (at annual returns 8 – 10%, and please keep at least for 5 years duration)

50%     : to remain in Epf

Finally, yearly withdrawal shall be about 7-8% of the total savings.


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