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Should I self-contribute EPF as a freelancer?

I'm a freelance designer with no employer EPF. Worth to top up myself (i-Saraan) or better to just put in ASB?

Anonymous asker ·Asked on 20 days ago ·705 views ·4 answers

[Question] Should I self-contribute EPF as a freelancer?
I'm a freelance designer with no employer EPF. Worth to top up myself (i-Saraan) or better to just put in ASB?

[Answer 1 | Engineer Ravi · Best Answer]
Do both if you can, they serve different purposes. i-Saraan (EPF self-contribution for those without a fixed employer) is great because you get the EPF dividend PLUS the government has been giving a matching incentive up to a cap, that's basically free money, take it. Plus your EPF contribution (up to RM4k combined with life insurance) is tax deductible, useful since freelancers pay their own tax. ASB is also solid with consistent dividends but it's a fixed unit trust, different risk profile and unit limits. My approach as a freelancer: park a chunk in i-Saraan for forced retirement discipline (you cannot easily touch it, which is the point), keep an emergency fund liquid, then use ASB for medium term. Don't put everything one place. The forced-lock nature of EPF is actually a feature for freelancers who otherwise never save.

[Answer 2 | Cikgu Aisyah]
Don't forget freelancers should also register SOCSO under the self-employment scheme (SKSPS), cheap and covers you if accident. EPF for old age, SOCSO for accident protection. Retirement planning not just about returns, also about protection when things go wrong.

[Answer 3 | Investor Auntie Grace]
As a freelance photographer I self-contribute to EPF every month like a salary to myself. Biggest benefit for me is discipline, because freelance income comes lumpy and I would spend it otherwise. The tax relief is a nice bonus at year end. Just treat it like a bill you must pay.

[Answer 4 | Makcik Kek Aidah]
ASB if you bumiputera got very good track record and you can withdraw more easily than EPF. For non-bumi, ASNB fixed price funds also available. Liquidity is the difference, EPF locked till you old, ASB you can cash out when emergency. Match to your needs lah.

Source: ASK https://my.a-sk.org/q/bk3-my-epf-self-contribute-i-saraan

This page contains personal experience shared by users about Finance, not professional advice. For important decisions, please consult a qualified professional or official channel.

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Engineer Ravi Beginner First-hand experience Mechanical engineer turned PM, ask me about PE exam, site allowance and switching to tech.

Do both if you can, they serve different purposes. i-Saraan (EPF self-contribution for those without a fixed employer) is great because you get the EPF dividend PLUS the government has been giving a matching incentive up to a cap, that's basically free money, take it. Plus your EPF contribution (up to RM4k combined with life insurance) is tax deductible, useful since freelancers pay their own tax. ASB is also solid with consistent dividends but it's a fixed unit trust, different risk profile and unit limits. My approach as a freelancer: park a chunk in i-Saraan for forced retirement discipline (you cannot easily touch it, which is the point), keep an emergency fund liquid, then use ASB for medium term. Don't put everything one place. The forced-lock nature of EPF is actually a feature for freelancers who otherwise never save.

Anonymous contributor Beginner First-hand experience

Don't forget freelancers should also register SOCSO under the self-employment scheme (SKSPS), cheap and covers you if accident. EPF for old age, SOCSO for accident protection. Retirement planning not just about returns, also about protection when things go wrong.

Anonymous contributor Beginner First-hand experience

As a freelance photographer I self-contribute to EPF every month like a salary to myself. Biggest benefit for me is discipline, because freelance income comes lumpy and I would spend it otherwise. The tax relief is a nice bonus at year end. Just treat it like a bill you must pay.

Makcik Kek Aidah Beginner First-hand experience Home baker turned kek order boss, I share cost per slice, delivery and repeat customer tips.

ASB if you bumiputera got very good track record and you can withdraw more easily than EPF. For non-bumi, ASNB fixed price funds also available. Liquidity is the difference, EPF locked till you old, ASB you can cash out when emergency. Match to your needs lah.

Should I self-contribute EPF as a freelancer?

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