THE World Bank has clarified that it did not recommend raising the Employees Provident Fund (EPF) retirement age to 65, amid recent reports suggesting otherwise.
In a statement, the World Bank said its policy paper, titled "Should Malaysia Expand Its Social Pension? Global Evidence, Design Issues and Options," focused solely on non-contributory social pensions, particularly the Bantuan Warga Emas (BWE) programme.
“The paper does not focus on the contributory system (EPF) and does not include any recommendations on the minimum retirement age,” it said.
The Bank added that while it had previously recommended gradually raising the retirement age in line with global trends and increasing life expectancy – currently 75 years in Malaysia – it did not prescribe a specific age.
“We recognise the need for societal discussion and consensus on this issue, and we advocate for gradual adjustments rather than a single large increase,” the statement said.
On the matter of EPF withdrawals, the World Bank noted that access should ideally align with the minimum retirement age.
“Allowing access to retirement savings before the official retirement age can lead to premature depletion of funds. In most countries, retirement savings can only be accessed upon reaching the retirement age,” it said, highlighting the risks for lower-income members.
The Bank’s report also pointed out that the EPF currently allows withdrawals from the age of 55, and that many lower-income members exhaust their savings within three to five years of withdrawal due to this low access age and modest median balances.
It emphasised that any increase in social pension eligibility should be accompanied by a gradual rise in the EPF access age to ensure financial security for older Malaysians. - November 2, 2025
