Invest Your EPF In Unit Trust

We believe that EPF is an investment fund that will take care of our retirement financial needs. In 2006, EPF declared 5.15% and in 2007, it is about 5.5%. With the current scenario, do you think that the return of about 5% is adequate to take care of all our financial goals on our retirement?. My answer to this is definitely no. Why? The answer is INFLATION. Before the hike in petrol price, the retail price of a 10kg dragon rice was RM30.00, now RM39.00, an increased of 30%; dressed chicken was RM6 per kg, now RM8 per kg. Petrol was RM1.92 but now RM2.70, increased of 40%. My question; is the return from EPF of 5% adequate to cover the inflation rate of say between 10% - 30%? It is wise therefore to put EPF savings in well-managed unit trust. Public Mutual Berhad has numerous funds to invest in. However be selective on the fund you want to invest in and get good advice before you withdraw your EPF. Based on the recent prospectus, some of the funds gave an average return of 20%. You can withdraw 20% from your EPF Account 1 of the excess above certain ceiling depending on your age. Subsequent withdrawal can be done every after 3 months interval.