SHAH ALAM - The Employees' Provident Fund (EPF) is considering a revision of the retirement system to support members in achieving a more consistent income after retirement.
This move aligns with the EPF's ongoing initiatives to promote monthly withdrawals instead of complete withdrawal, aiming to provide members with a stable financial outlook during their retirement years.
If the proposed method is successfully implemented, a portion of the members' savings, up to a specified limit, will be converted into a monthly income to provide a steady stream of funds while the balance could be withdrawn in large qualtities.
"In 2022, over 7,000 members voluntarily chose this monthly withdrawal. This process to implement this periodic withdrawal mechanism is currently under review and we will consider the ability and readiness of members to make this transition.
"This suggestion will involve generational changes that would take some time to be enforced.
"EPF believes that this transition is necessary following the increase in average life expectancy of Malaysians from 54 years in 1957 to 75 years today,” the body said in a statement released, today.
The aim of implementing this change is to prevent elderly individuals from falling into poverty during their retirement years.
EPF added it was committed to take a pragmatic and practical approach towards the suggestions to improve policies and balancing the needs of current members with the need to maintain adequate savings after retirement.