KWSP is paying out 6.10% Dividend, which is very attractive to the general public. It is a very worthwhile investment to get 6.10% Dividend without having to do it yourself and without a huge risk.
You may often hear people say that they want to withdraw money from their CPF account to invest themselves, such as withdrawing money to invest in the stock market, investing in real estate, doing business, etc. So is it really worth it?
If you can find a higher investment than 6.10%, you can certainly choose to withdraw from your CPF account. However, if you cannot find a higher investment than 6.10%, it may be best to keep the money in your CPF account.
If you have $100,000 in your CPF account, at 6.10% Dividend, you can get RM6100, which is an average of RM508 per month. If you have 50,000 in your CPF account, you can also get RM3050, which is an average of RM254 per month. In other words, this can be said that you get a monthly raise of RM508 or RM254.
Some people may think that the savings in the CPF account must be withdrawn only at the age of 55, but it is not true. The CPF account is divided into a first account and a second account, with the first account accounting for 70% of the savings and the second account accounting for 30% of the savings. You can apply for withdrawals from the second account when you are under age 55.
The CPF second account can be used to buy a house, build a house, pay off the balance of your mortgage, pay the monthly mortgage payment, withdrawals for health or medical purposes, education expenses for your children, etc. The approval rate for second account withdrawals is very high, so you do not have to worry about facing a situation where you cannot withdraw your money.
If the government does not force people to save, they will not be motivated to save on their own and will then face no income after retirement.
