Proposed mandatory withdrawals only for members born 2010 onwards, says EPF

The Employees Provident Fund (EPF) today said that the mandatory monthly withdrawals being proposed would only apply to new members born in 2010 onwards who register with the EPF after its implementation date.

The EPF also said that the proposal was still being refined and that the first such payout under the proposal would only be made when those new members retire, decades in the future.

"Any decision regarding the mandatory monthly withdrawal proposal will only be made with careful consideration and alignment with our commitment to the best future interests of our members," the fund said in a statement.

It also assured that there was no change to the current lump sum withdrawals at age 55 and 60 for existing members.

Members can currently opt in for the monthly withdrawal option should they wish to do so, the fund said, adding that the proposed mandatory withdrawal mechanism would bring Malaysia in line with widespread global practice, as the country was one of the few in the world that continued allowing lump sum withdrawals.

EPF CEO Amir Hamzah Azizan previously said that such a mechanism would offer members a better way to manage their retirement funds, and that they would be able to enjoy annual dividends for their remaining savings with the fund.