EPF

EPF says there are 4,700 members have over $1 million in their accounts. So in the country there are now an additional 4,700 millionairs! These are the top bracket earners in the country from general managers, group general managers, directors and ceos of companies. Now down the food chain there are over 80%(I think) whose savings will not last within a year when they retire or withdraw their money. EPF also announces new schemes to withdraw money from the funds to the members. I always think EPF should stick its basic aim of keeping the members contributions until they reach 55 years old. With all these type of withdrawals, the members won't save while they are working. Believing that they can withdraw certain amounts when they reach certain ages. Perhaps EPF should set up another board for members to subscribe while they are still working. It can model after ASN for example where the contributions will be channelled to give maximum returns on investments. Allowing members to withdraw in the base fund shouldnt be allowed in the first place. Because as I said it would be gone within a year for majority of the members. With this method they contribute while they are still working to increase their pension scheme. Mind you as for example ASN gives a good return on investment. Mind you majority of the lower food chain dont buy life insuranc policies or endowment fund policies or whatever products insurance available in the market. I think it is the amount they have to pay that turned them away to subscribe to these policies in the market. As EPF calculated a member needs a minimum of $120,000/- to last until he/she is 75 years old at $500/- a month ( without taking into consideration on inflation and cost of goods?) Now how many members have that amount of money in their accounts?