KUALA LUMPUR – April 10, 2015: The Employees Provident Fund (EPF) is contemplating on drafting the best policies to re-align the discrepancy between the fund’s withdrawal age and current national retirement age.
Though deemed as a sensitive issue, EPF chief executive officer Datuk Shahril Ridza Ridzuan said the move was necessary to safeguard the welfare of retirees.
Shahril considers the adjustment as timely following the extension of the retirement age by the government to 60 years.
“In Malaysia right now we have this huge discrepancy, whereby retirement savings are withdrawn before members actually retire from their job.
“This causes them to develop a false sense of security which consequently leads them to become more spendthrift,” said Shahril.
Studies conducted by EPF’s researchers and other economists discovered that about 70 per cent of people who withdraw their savings in full will deplete their savings within three to five years.
“When they really retire from their job, only then will they realise that they have very little savings.
“However, before we proceed to implement anything, we need to have consultations with members, employers, trade unions and other interested parties,” said Shahril.