EPF withdrawal age stays at 55
THE Employees Provident Fund (EPF) will not be raising the eligible age for contributors to make a full withdrawal of their savings. The Malaysian Insight reports:
It said it has taken note of the World Bank’s suggestion to gradually raise the age when members can make a full withdrawal of their retirement savings from 55 to 65.
“The EPF assures members that no such steps on raising the withdrawal age have been discussed with any party at this point in time,” said the fund in a statement.
The fund stressed that it takes a prudent approach to decisions on major policies concerning members, including by holding in-depth studies and engaging with its members and key stakeholders, so as to ensure that the members’ wellbeing is the foremost consideration.
In the World Bank’s Malaysia Economic Monitor report released yesterday, it was recommended that the government strengthens the adequacy of old-age income protection by gradually increasing the minimum withdrawal age for EPF Account One to 65.
The World Bank also recommended the conversion of contributions in EPF Account Two to retirement savings; a phased withdrawal for EPF balances; and improved social assistance for older people through a modest, broadly targeted social pension. – Bernama, June 26, 2020.