‘Make EPF periodic withdrawal proposal optional, not mandatory’ (Poll Inside)

KUALA LUMPUR: Malaysians are divided over the Employees Provident Fund’s (EPF) proposal to impose periodic or monthly withdrawals on members upon reaching the voluntary retirement age of 55, with many calling for the move to remain optional.

Monthly withdrawals are currently voluntary but may be made mandatory for new members in the future.

Malaysians took to social media to express their thoughts on the decision, sharing why they felt such periodic or monthly withdrawals should remain voluntary.

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Twitter user @vampireskiat said the move should be an available option instead of a compulsory move: “We can’t fully access our own retirement fund? If I want to use it, let it be! Maybe I just wish to pay off anything or get a new car for my retire(ment) life... what’s next?”

@NinjagoIanlkh commented in a similar vein, saying, “I want to decide how to use my retirement funds myself.”

“It’s the individual’s money, so how can mandatory conditions to withdraw post-retirement be imposed?” asked Instagram user @lolasmummy67.

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In addition, some spoke out in favour of a lump-sum withdrawal rather than the currently proposed periodic withdrawals.

“As an option in addition to lump sum withdrawal should give more choice,” commented Instagram user @feizal.ghazali.

Instagrammer @nathanrao echoed the sentiment, saying that “lump sum (withdrawals) should still be allowed... otherwise no point having EPF.”

Others were of the opinion that a more nuanced approach was necessary.

Twitter user @CK55672027 commented on The Star’s report, suggesting that the proposal should only apply to retirees whose savings funds fall under a particular range, and said the EPF should allow people to withdraw all their funds “with terms and condition(s)”.

The effectiveness of such a move was also called into question, with @sawcboon on Twitter asking, “How would imposing periodic or monthly withdrawal be effective if they (the affected members) have insufficient savings?”

“Would people still be able to withdraw in lump sum though as one of the options? If it’s just this scheme then what if you drop dead by 56? Then who gets the money? The next of kin or govt?” commented user @greybijoux on The Star’s Instagram post.

In an online poll by The Star with over 800 respondents as of 6pm yesterday, 75% of them didn’t agree with the proposal to impose such periodic withdrawals.

A good number of respondents were of the opinion that such a move should not be made mandatory and instead be on a voluntary basis, with members being given the options of periodic, monthly or full withdrawal.