KOPP
Retirement Fund works very much the same as a savings policy but in
this case it offers you a specialized vehicle to save for a specific
reason, retirement. It sole aim is to provide money for the years of
your life following your retirement.
Objective
-
To put in place a simple, affordable and highly
productive scheme for the self-employed and others who do not make regular
contributions to EPF so as to ensure that there is something set aside for their
golden years.
-
To complement and supplement the EPF which in most cases
may not be sufficient to ensure retirees maintain the lifestyle they are
accustomed to.
-
Getting Malaysians to live their life today and finance
a bright tomorrow through easy saving platform which will provide a simple
solution to build a solid financial foundation for their retirement period.
1. Take Control of Your Retirement
It's not just saving money. It's laying the foundation
for your future. And investing it wisely through KOPP to ensure that you retire
the way you want and live the same lifestyle. With KOPP Retirement Fund, it's
never been easier to start saving, whether you've just graduated or have been
working for a few years. It is a simple way to build a solid financial base for
your retirement period.
Start early and contribute
regularly.
The sooner you start saving for retirement, the more time your
money has the potential to grow and the harder your money works for you. But
even if you didn't start early, it pays to start now. Contributing regularly is
key. Use our tools and see the direct benefits of putting your money to work
early and how systematic savings in a non-profit organisation can
pay.
Pay yourself first.
A time-proven technique is to set
aside retirement funds before you have a chance to pay and spend them. Set up
systematic withdrawals from your salary and pay to yourself before anyone else
through a Saving or Retirement Scheme. That way you'll be saving regularly, so
it's convenient and you won't "forget" and spend it elsewhere.
2. Why Savings For Retirement is Important:
Most people plan a lot
of things, Home, vacation, etc……..but very few plan for their retirement years.
Regardless of how long you have before you plan to retire, it’s a good idea to
begin thinking about the lifestyle you want to have when the time comes to self
support instead of depending for hand out. Three crucial factors come to mind to
help you carry on with life:-
Think about where you see yourself in retirement. At
this point you may not be 100% certain, but having an idea helps you put
together a plan to help get you there.
How much can you invest now for your future
retirement? Saving even a few ringgit each week or month will allow your
retirement savings to grow over time
It’s important that you are comfortable with the way
your money is invested. The basic needs – Place to live (if you don’t own a
home) food and upkeep, Medical and Tranport.
Calculate How Much You'll
Need
How much money will you
need? Is solely up to you
You’re likely to need about 70% to 80% of your
current income to maintain your present lifestyle in
retirement.
How much will you have?
Now that you have
an idea of what your living expenses may be in retirement, estimate the amount
of money you can expect to have in your retirement accounts.
Stay on
Track
Now that you have a plan for retirement and
you’re committed to contributing to it regularly, Review your plan regularly and
during life-changing events. As your personal situation changes, your retirement
plan may need to change to keep you on track.
Don't Touch Your
Savings.
Don’t dip into your retirement savings. You’ll lose principal and
interest, and you may lose tax benefits.
Who is entrusted with keeping the
funds?
All contributions are paid directly to
Universal Trustee (M) Bhd (formerly known as Standard Chartered Trustee (M)
Bhd). Who is the Custodian of the Funds and disburse all payment when if
becomes due.
Where are the funds
invested?
The funds are invested by our Independent
Manager in Blue Chips, Bonds, IPO’s and Units Trust only.
How come such generous and high
returns?
It is because of the perks and the advantaged
position of being a cooperative, society and further, as a cooperative, we do
not pay corporate taxes like most private entities, we are only subject to 5%
income tax on a sliding scale (higher our income, lower the tax). So balance of
the Returns goes back to our members in the form of Benefits.
Who can apply?
All Malaysians aged 21 to 45 years can
apply. Members can opt to make their contributions either monthly,
quarterly, half-yearly or yearly as savings towards the KOPP Retirement
Fund.
When members reach the age of 55 (maturity date) they will receive
full refund of their contributions plus all accumulated interest or optional at
age 50.
Alternatively members may opt not to make the withdrawal until
age 60 with extended benefits.
Surrender Cash Value
There will be no cash value within the first two
years. Please refer to Surrender Cash Value Chart for cash values from third to
tenth year.
After 10 years but before members reaches age 50; full refund
of all contributions plus 4% interest.
