EPF Dilemma...

Our so-called soon to be Mr. Prime Minister had announced a reduction of employee’s EPF contribution from 11% to 8%.

Source

It’s been quite a discussion everywhere, everyone is voicing out their opinions on such arrangement by the government. Personally I don’t see why people are making a big fuss out of it. First, this reduction is intended to increase disposable income of the people, to encourage the growth of economy in order to reduce the effect of recession. Whether recession is going to hit us or not that’ll be a different story all together. I’m not an expert nor do I know a lot about the economy, but the idea of having more cash flow transfers in the market would benefit the economy is rather true.

Some people may say the 3% reduction is insignificant and it will reduce the savings of their retirement days. I truly believe that this 3% could make into good use if one is discipline enough. At the end of the day the 8% + 3% would still be at your hand. You can choose to invest the 3%; you can choose to pay off your house monthly installment. These could in fact bring more benefit to you. I shall not complain the government for introducing this reduction but I would condemn whoever who thinks this move is unwise just because they couldn’t resist the temptation of spending off the 3% themselves.

After all, do you really know how well the EPF fund is being managed?