EPF Future Value Formula:
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The Employees Provident Fund (EPF) is a retirement savings scheme for employees in Malaysia. Both employees and employers contribute a portion of the employee's salary to this fund, which earns annual dividends.
The calculator uses the future value formula for compound interest with regular contributions:
Where:
Explanation: The formula calculates both the growth of your current balance and the future value of your regular contributions.
Details: Planning your EPF savings helps ensure you'll have sufficient funds for retirement. Understanding how your balance grows can help you make informed decisions about additional voluntary contributions.
Tips: Enter your current EPF balance, expected monthly contribution, estimated annual dividend rate (typically 5-6% for EPF), and number of years until retirement.
Q1: What is the current EPF dividend rate?
A: Historically between 5-6% annually, but this can vary year to year. Check the latest EPF announcements for current rates.
Q2: Should I include employer contributions?
A: Yes, your monthly contribution amount should include both employee and employer portions (typically 23-24% of salary).
Q3: How accurate is this calculator?
A: It provides a projection based on constant contributions and rate. Actual results may vary due to changing rates and contribution amounts.
Q4: Can I make additional contributions?
A: Yes, EPF allows voluntary contributions which can significantly increase your retirement savings.
Q5: When can I withdraw my EPF?
A: Normally at age 55, but partial withdrawals are allowed for specific purposes like housing, education, or medical needs.