THE government is considering introducing a monthly pension payout under the Employees Provident Fund (EPF), in addition to the current lump-sum withdrawal option.
This is to provide retirees with a more stable income stream.
According to the 13th Malaysia Plan, the government is exploring a more effective mechanism to ensure a steady stream of income after retirement, recognising that sufficient retirement savings are crucial for the later years.
This mechanism will allow for the separation of EPF contributions into two components — retirement savings and retirement pension.
"With this, workers can withdraw a portion of their savings while also receiving a monthly pension upon reaching retirement age,” read the report.
At present EPF funds can be withdrawn in full upon that retirement age (55-years).
EPF accounts are divided into three types, namely the Retirement Account (Account 1), the Wellbeing Account (Account 2), and the Flexible Account (Account 3).
Meanwhile, the report also said that social protection for all types of workers will also be enhanced to ensure broader coverage, including safeguards against job loss and workplace accidents.
Apart from that protection against occupational hazards will be expanded to include accidents that occur outside of working hours and are not work-related. - July 30, 2025
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