How a 35-Year-Old Woman Saved Nearly RM2 Million in EPF

Building significant retirement savings early in life is a challenge for many, especially after only a decade in the workforce. Yet, a 35-year-old woman recently shared her journey, claiming she is on track to reach RM2 million in her Employees Provident Fund (EPF) by the end of this year.

In a viral Reddit post that is currently circulating on X, the woman, identifying herself as a mid-level manager, revealed she started her career earning below RM5,000 monthly. However, through rapid promotions within the same company, she now reportedly brings in around RM50,000 monthly, with her annual bonuses ranging between RM200,000 to RM300,000.

Her approach, she insists, emphasizes excelling in her job rather than relying on multiple income streams. “I’m posting this to show that just doing well at your 9-5 job is enough to retire comfortably,” she explained, highlighting her belief in the power of career focus.

Maximizing EPF Contributions and Leaving Funds Untouched

Beyond her standard EPF contributions, she also makes use of Malaysia’s self-contribution option, consistently contributing up to the RM100,000 annual limit. This strategy allowed her to accumulate nearly RM400,000 in her EPF account last year alone, including dividends.

She emphasized that she hasn’t withdrawn any funds from her EPF, even though she could withdraw amounts exceeding RM1 million. “I’ve never touched anything from my EPF, even though I am eligible for a withdrawal anytime as I have reached the RM1 million mark.” she wrote, underscoring the discipline required to let her savings compound.

The dividends alone have been a remarkable benefit. “My dividend alone was RM80,000 last year, and this will just keep growing,” she added, pointing to the power of compounding as the driving force behind her rapid wealth accumulation. Notably, she achieved her first RM1 million in ten years, but thanks to the compounding effect, reached her second million in just three more years.

The Role of Company Loyalty and Career Progression

In an age where frequent job changes are common, her decision to remain loyal to one company since graduation has yielded significant rewards. She credits her financial success to focusing on performance and steadily progressing through her role. “Rather than diverting my attention to other things, I focus on being really good at my job,” she wrote. Her loyalty led to “huge” salary increments, including a milestone when her salary hit RM20,000 within just five years of working.

Her post, which was shared by Kewangan Graduan on X on October 30, has inspired countless Malaysians to re-evaluate their own EPF strategies and consider the benefits of loyalty and performance in a single career path.

Key Takeaways from Her Financial Strategy

Her journey offers valuable insights for Malaysians who are working towards financial stability:

Focus on career growth and maximize salary potential within one company.
Use EPF self-contributions as an investment tool by contributing the maximum allowable amount.
Avoid unnecessary withdrawals to benefit fully from the compounding effect.
Embrace financial discipline in lifestyle and savings decisions.

Source: here

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