KUALA LUMPUR – The Employees Provident Fund (EPF) is mulling monthly instead of lump-sum withdrawals at age 55 only for new contributors born in or after 2010, the fund has clarified.
“No change is intended for the current lump sum withdrawals at age 55 and 60 for existing members.
“The current EPF monthly withdrawal option only applies to members who voluntarily opt-in,” EPF said in a statement on its website.
This follows public concerns after a poster went viral on social media, claiming that the government has agreed that EPF contributors who have reached the age of 55 can only withdraw their savings on a monthly basis.
Communications and Digital Minister Fahmi Fadzil yesterday said the poster is fake.
Berikut merupakan penerangan lanjut mengenai cadangan pengeluaran pasca persaraan berkala KWSP sebagai rujukan.#KWSP #KWSPInfo pic.twitter.com/r9j7F68g2O
— KWSPMalaysia (@KWSPMalaysia) July 10, 2023
EPF today said the mandatory monthly withdrawals for those aged 55 is still a proposal being refined and would only apply to new EPF members born in or after 2010, who register with EPF after the implementation date.
“The first payout under the mandatory option is only expected to be made when these new members retire some decades in the future.
“This proposal is still being refined…the EPF assures that any decision regarding the mandatory monthly withdrawal option will only be made with careful consideration and in alignment with the EPF’s commitment to the best future interests of its members.”
EPF added that Malaysia is among a “very small minority” of countries that continue to allow lump sum withdrawals instead of a regular payout of retirement funds.
The proposal for mandatory monthly withdrawals would bring Malaysia in line with widespread global practice, it said. – The Vibes, July 11, 2023
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