A major change could be coming to the Employees Provident Fund (EPF), as the government considers introducing a monthly pension payout to help retirees better manage their savings.
This would be in addition to the existing lump-sum withdrawal method.
The MADANI government is considering a new retirement plan that may allow Employees Provident Fund (EPF) members to receive monthly pension payouts in addition to the existing lump-sum option.
This move aims to help retirees manage their savings more wisely and secure long-term income after they stop working.
Two-part EPF savings system under review
As outlined in the 13th Malaysia Plan report, the proposal involves dividing EPF contributions into two parts — one for a retirement lump sum and another for monthly pension payments.
This setup would let retirees withdraw part of their savings while still receiving monthly support from the pension portion.
Current EPF withdrawal rules
At present, EPF members can fully withdraw their savings when they turn 55. The fund is split into three accounts:
- Account 1 is for long-term retirement savings and only accessible upon retirement.
- Account 2 supports housing, education, healthcare, insurance/takaful, and hajj.
- Account 3, launched last year, allows more flexible withdrawals at any time.
EPF sees strong returns in 2024
The EPF, which serves private-sector workers, delivered a 6.3% dividend return for both conventional and Shariah accounts in 2024 — among the highest compared to other government investment funds.
Other government-linked funds include Permodalan Nasional Bhd (PNB), which manages ASB and ASN, and Lembaga Tabung Haji, the pilgrim savings fund.
READ ALSO:
