A 35-year-old woman has revealed that her Employees Provident Fund (EPF) savings have reached nearly RM2 million, sparking widespread discussion online.
The woman shared the revelation on Reddit, in which she detailed her journey to achieving this milestone.
The woman holds a high-paying position and has remained with the same company since graduation, advancing through internal promotions and salary increases.
I only learned about voluntary contributions a few years ago. Since then, I’ve been contributing the maximum annual limit of RM100,000. I’ve never withdrawn from my EPF account, even though I could access the funds once my savings exceeded RM1 million.
A screenshot shared shows her EPF balance at RM1,918,580.36 as of 11 October.
Malaysian lady saved RM 2 millions in EPF by 35 years old by maxing EPF self contribution of RM 100K/year & not touching EPF since start working
Link https://t.co/nGrfmNVpTl
— Uncle Cato (@Solo_Level_27) October 30, 2024
The Million-Ringgit Math: How Compound Interest Turned Savings Into a Fortune
She highlighted the significant impact of compound interest on EPF savings.
While it took her 10 years to reach RM1 million with a lower salary, she accumulated nearly RM2 million in just three additional years.
Last year alone, she received RM80,000 in dividends. Including voluntary contributions and dividends, her total annual increase was close to RM400,000.
The public response has been mixed.
Some have suggested that her high position was due to connections, while others have praised her loyalty to the company.
Some commenters noted her strategic use of the voluntary contribution scheme.
This auntie is 56 y/o.
She has been working as an ordinary clerk throughout her lifetime, with only an SPM cert.
In 2022:
➡️#EPF savings: RM509k
➡️Dividends: RM28127 (RM2343/month passive income)This is the power of COMPOUNDING INTEREST.@KWSPMalaysia pic.twitter.com/ufJALH88y5
— Bitcoin Malaya (@bitcoinmalaya) March 22, 2022
