Contributor’s lifespan a vital factor, say the people

PETALING JAYA: The full withdrawal of savings from the Employees Provident Fund (EPF) should be based on the contributors’ lifespan and retirement age, say EPF contributors.

They also said that withdrawals, including those for Account 1, should be made easier in cases of emergencies, sickness and financial hardship, even if the contributor is under the age of 55.

Businessman Rashid Abdullah said the government should look into the lifespan of contributors before deciding to raise the age for the full withdrawal of their savings.

“I think quite a number of people are now dying in their 60s, so the government should maintain the withdrawal age as it is,” he said.

He added that if the withdrawal age is raised, there would be more issues with the management of the EPF savings, especially when EPF contributors die before they are able to withdraw their money.

“Even now, we are seeing that the handling of EPF funds for deceased contributors is not being done efficiently,” he said.

The 44-year-old, who lives in the Klang Valley, said instead of raising the age limit, the government should look into simplifying the process for people to withdraw their money for emergencies and other urgent needs.

A retired biochemist on Twitter @firdauzs69 said the government should consider allowing withdrawals from contributors’ Account 1 even before they reach 55 in emergency cases, especially those involving health.

“I was 20 months away from turning 55, but I suffered a minor heart attack.

“Who knows what kind of illness I will suffer in the days to come? Another heart attack? Can I survive?” he asked.

Engineer Farzihan Nur Syaiqa said the full EPF withdrawal age should coincide with the retirement age of contributors.

“If the person is still working above the age of 55, then the withdrawal age can be raised in this case as the person still has income to survive on.

“If the person retires at 55, then the withdrawal age should be maintained, as he will need the money to support himself in retirement,” said the 31-year-old Klang resident.

Similarly, bank manager Shidah Abdul, 48, from Kuala Lumpur, said the withdrawal should follow the retirement age of an employee.

“As such, if the contributor is working even after the age of 55, then there is no need for the withdrawal.

“This way, if people extend, they will have some retirement funds rather than none.

“When we are old, none will offer a job and we will be unfit to do anything,” she said.