kuala lumpur: The Employee Provident Fund (EPF) has been working to establish a more pension-like approach to provide its members with a more stable income after retirement.
The EPF said this is also evidenced by the fact that it is now encouraging members to voluntarily move to recurring monthly payments instead of lump sum withdrawals.
“In 2022, more than 7,000 members have already voluntarily adopted the monthly payment option. Member competence and readiness are taken into consideration.
“The proposed changes will likely require a generational shift, and the transition will take time,” the company said in a statement today.
Nonetheless, the EPF said that considering that life expectancy in Malaysia has increased from 54 years in 1957 to 75 years today and is expected to increase further in the future, leading to a longer life after retirement. The statement states that it believes such a transition is necessary.
“EPF will continue to encourage members to voluntarily switch to the monthly drawdown option,” it said.
He added that monthly withdrawals, which allow members to convert part of their savings into monthly income up to a certain limit and withdraw the rest in one lump sum, are necessary for preventing poverty and consumption in their old age. Smooth retirement.
“EPF takes a pragmatic and pragmatic approach to its proposed policy enhancements, balancing the needs of current members with the desires of members to maintain their savings after retirement.
“The EPF will notify affected Member States of any relevant changes to its policies well in advance of the changes coming into force,” it said. –Bernama
