11% or 7%

With the recent news of EPF reacting to the economic harm of COVID-19 allowing employees to reduce their contributions from 11% to 6%, I just wanted to write a post in response to this for the young workers who might be seeing this as an opportunity to get money in their pocket.

Read here for more: https://themalaysianreserve.com/2020/02/28/epf-to-slash-employees-contribution-to-7/

Long Term Wealth vs Immediate Gratification

Please take a breath and forget about those purchases you could get with the extra money.

This is the time for financial responsibility. Just in case you didn't know what it is, here is a nice definition https://www.investopedia.com/articles/pf/09/financial-responsibility.as.

It is a time to relook at your finances and budget and see what can be temporarily cut to manage the economic pains of the next few months.

Focus on the long term goals of what EPF stands for; Providing A Comfortable Retirement.

Is anything more important than that?

A key part of reaching this goal is being comitted and consistent with your contributions. On both a financial and emotional level, it is important to being strong and still allocating the 11% to your retirement to make sure that your retirement is that more covered by your funds.

Read here to see how Americans manage their retirement accounts during a recession for some helpful tips: https://money.usnews.com/investing/portfolio-management/slideshows/rules-for-managing-your-401-k-in-a-recession?slide=3\

Hope This Helps!