Many lawmakers give the thumbs down to EPF proposal

PETALING JAYA: Many lawmakers have given the thumbs down to the Employees’ Provident Fund’s (EPF) proposal to raise the permissible age for withdrawing retirement savings from 55 to 60.

Most felt that the people should have the right to their money at 55.

Pulai MP, Datuk Nur Jazlan Mohamed said it was unfair to impose such a rule on people who have been saving up for so long.

“These days people are quitting early, so they should be allowed to withdraw their money and enjoy a reasonable lifestyle, after working all their life.

“If they are only going to be allowed to withdraw at the age of 60, they will only be using the money to pay for their medical expenses,” he said.

The EPF made the proposal recently, saying this should apply only for a full withdrawal.

Shah Alam MP Khalid Abdul Samad said it was important for EPF to understand that retirement at 60 was more applicable for people in the government sectors.

“In most private sectors, retirement at 55 is still being practiced, so it is unfair to keep them waiting until 60 to get their money.

“There are situations where people want to get their money out quickly to pay up for their loans and so forth to avoid interest,” he said.

He said the fund can instead give people the option to withdraw at 55 but encourage them not do so until 60, because in most cases people do keep their money in the fund until 60 or later.

“I personally feel that there is no need to make it into a law, because that is when the public gets apprehensive,” he added.

Johor Baru MP Datuk Seri Shahrir Abdul Samad shared the sentiments and said that an employee should be entitled to his or her provident fund after retirement.

“As soon as the retirement is verified by the employer, the member should be allowed to withdraw the savings as it is unfair otherwise.”

However, Klang MP Charles Santiago said that while it would make more sense to withdraw at 60, “it appears that people are worried that their EPF money will be used, as there has been history of EPF funds being accessed to pay off short term loans and such”.