Govt considering mandatory monthly withdrawals for EPF members after 55

Prime Minister Anwar Ibrahim says the government is open to the proposal by the Employees Provident Fund (EPF) to make it mandatory for new members to withdraw their savings periodically instead of in a lump sum upon reaching the age of 55. 

He said the proposal was currently in the final stage, adding however that it would need to take into account several constraints, including the fact that the savings of some EPF members were too small. 

"I have no objection (to the proposal)," he told reporters in Kuala Lumpur today. 

Yesterday, EPF CEO Amir Hamzah Azizan was reported as saying that the current option of periodic withdrawals on a monthly basis was seen as offering members a better way to manage their retirement funds.

He said making periodic withdrawals would also allow members to continue enjoying annual dividends for their remaining savings in the EPF.