EPF seeks consultation on withdrawal age
Picture Ref: The Star Online
THE Employees Provident Fund (EPF)
is planning to call for a public consultation as a first
step towards raising the permissible age for members to
withdraw their retirement savings from the current 55
years to 60 years.
“We are looking at this issue for the right policy
response,” Shahril said.
In his presentation on EPF’s annual report 2014
yesterday, Shahril revealed that an alarmingly high rate
of 68% of all EPF members had less than RM50,000 in
their accounts upon retirement.
The EPF recommends having at least RM196,800 in basic
savings, but statistics showed only 22% of active
54-year-old contributors met this minimum last year.
A basic saving figure was derived based on a monthly
income of RM820 a month for 20 years until the age of 75
years. The EPF, in its annual report 2014, put the
average life expectancy of 72.6 years for men and 77.2
years for women.
The minimum retirement age in Malaysia was raised to 60
years in 2013. However, the permissable age for EPF
members to withdraw their savings remains at 55 years.
The Star Online, Saturday 11 April 2015