Covering Essentials

Save for Your Child's Education

Most parents aim to provide their children with the best education possible, in order to secure their children’s future under a high quality learning experience. However, thinking about it is not the same as actually setting up a concrete plan to realise that dream.

With the rising cost of tertiary education, many parents are concerned about whether they will be able to afford to send their children to university. Which is why parents should start planning for their child’s university fund as soon as possible.

Saving for your child's education using unit trusts give you control over your investment. You decide how and when to invest, when to access / liquidate the money and what to do with it, based on the location, duration of the education you are planning for.

Transfer your existing retirement savings

The EPF-Member Investment Scheme (EPF-MIS) was launched in 1996, with its primarily objective of giving EPF members an opportunity to seek higher returns with their savings in the EPF.

Recognizing that inflation plays a significant negative role in the future living standards of retirees, the EPF was keen to allow its members to earn a higher rate of long-term returns, much more than could be earned, though an almost risk-free savings scheme.

To do that end, EPF members needed to “invest” rather than “save”.

With the rising inflation rate and living standard, it is important that you invest to increase your retirement savings and to avoid a significant decrease in your future purchasing power. Consider investing via EPF Members Investment Scheme to help achieve your retirement goals.

You can transfer your current retirement savings from your employees provident fund to any of our EPF-approved funds. With this, your investment will be into your choice of unit trusts.

Your investment(s) must comply with the prescribed legalities set by EPF.

EPF has set a basic saving amount as the baseline before we can withdraw from our EPF account 1 for unit trust investment. The basic saving amount is varied based on the age of the members, and it will be revised periodically to make sure members have a basic level of savings remained in EPF, which is safe. So, you will not be exposed to too high risk in overall even you withdraw for investment.

Besides, EPF has selected certain unit trust funds to be EPF Approved funds. EPF Member Investment Scheme can only invest in these approved funds, but not every fund. This is to safeguard that EPF members will only invest in those funds having good track record and comparable safe and stable performance.

Q. Should you withdraw your EPF money to invest in unit trust funds?

A. A lot of investors are reluctant to give up their EPF for investment purposes. They are content with the dividend yield, but if you take away the erosion on inflation, you many be left with little of the dividend. Do you know that nearly 4 out of 5 people who contribute to EPF cannot afford to retire?

Q. Is it worth it?

A. I think you realize that since the money is in there for the long run, perhaps you can withdraw (according to the table) from Account 1 and make your money work harder for you; and enhance your retirement savings.

Risk Management

A method to protect your wealth through insurance. When unfortunate circumstances happen, risk management can reduce the impact of your financial loss.

Mutual MediPlus (can “top-up” your hospitalisation and surgical insurance and be prepared for any major medical) **
Mutual Life Plus 2 (Life, Critical Illness & Personal Accident)
Mutual MediCare (Hospitalization & Surgical)
Group Term Life & Group Personal Accident (Life & Personal Accident)
Mutual Takaful Protection (Life & Critical Illness)

** It is a Policy of last resort which will only make payment after all avenues of compensation from other medical insurance policies have been fully utilised. The product may also serve as a very affordable basic hospitalisation and surgical insurance Policy for those who are prepared to self-fund the amount of the deductible. (This product shall only be valid from the 2 January 2019 and will no longer be valid after 30 June 2115.)