EPF: Full withdrawal at age 55 remains

Bernama
Jun 26, 2020 20:59 MYT

The World Bank recommended the conversion of contributions to EPF Account Two to retirement savings.

KUALA LUMPUR: The Employees Provident Fund (EPF) today assured members that the issue of raising the withdrawal age has not been discussed with any party at this point in time.

The EPF, however, said it has taken note of the World Bank's suggestion to gradually raise the age when members can make a full withdrawal of Accounts One and Two of their EPF retirement savings from 55 to 65.

The fund stressed that it approaches major policies concerning members in a very prudent manner, including conducting in-depth studies and engagement with its members and key stakeholders.

"This is to ensure that members' well-being is always at the forefront in carrying out the EPF's mandate," it said in a statement.

In the World Bank's "Malaysia Economic Monitor" report released yesterday, the bank recommended that the government strengthen the adequacy of old-age income protection by gradually increasing the minimum withdrawal age for EPF Account One balances to 65.

Moreover, the World Bank recommended the conversion of contributions to EPF Account Two to retirement savings; mandate a phased withdrawal for EPF balances; and improve social assistance for older persons through a modest, broadly targeted social pension.

-- BERNAMA