The Employees Provident Fund (EPF) has recently made a state regarding the EPF monthly withdrawal option. It wishes to clarify that no change is intended for the current lump sum withdrawals at age 55 and 60 for existing members. Currently, EPF monthly withdrawal option only applies to members who opt-in voluntarily.
According to the statement issued by EPF, the proposed mandatory monthly withdrawal option will only apply to new EPF members born in or after 2010, and registered with the EPF after the implementation date.
Under the mandatory option, the first withdrawal from EPF is expected to be made when these new EPF members retire, several decades from now.
The proposal is currently still being reviewed and refined, and the EPF assures that any decision regarding the mandatory monthly withdrawal option will only be made with careful consideration and alignment with the EPF’s commitment to the best future interests of its members.
The mandatory monthly withdrawal system will bring Malaysia in line with a widespread global practice, since Malaysia is currently a part of a small minority that continues to allow lump sum withdrawals and not a regular payout.
Read More: Withdrawing Your EPF Savings Early? Here’s What You Need To Know
