The Star: Compounding Interest a Factor in EPF Contribution

This article discusses our EPF system and the difference between contributing 9% and 11% for employees. It is generally recommended to contribute 11% as the money goes towards your retirement and EPF offers decent dividends. The additional 2% does not seem like much if you look at it on its own but when compounded over many years the amount becomes much larger and will become a good source of money to draw from in your retirement years. 

For those who do not want to contribute to EPF, Kimberly points out that you need to ensure that you have a supplementary investment that is solid and secured. The compounding factor works here as well, so it is highly advisable to start as early as you can. Do not fall into the trap of spending more just to enjoy tax reliefs. Your actions now will determine your quality of life in the future, so be careful with your spending and invest wisely. 

This article can be found online here.