KUALA LUMPUR: The government is finalising the details of a proposal to make it mandatory for retirees to make monthly EPF withdrawals when they reach the age of 55, says Prime Minister Anwar Ibrahim.
Anwar, who is also the finance minister, said Putrajaya has no objections to the proposal but it would depend on EPF’s capacity.
“That is still in the final stages of fine-tuning.
“Amir Hamzah (the EPF CEO) just told me that there were ‘some opposition’, especially from those whose savings are too small,” he told reporters after an event here today.
At present, withdrawals from EPF are voluntary after retirement.
All EPF account holders can withdraw up to 30% of their savings at the age of 50. When they reach the age of 55, they can make a full withdrawal or withdraw any amount as they like.
Yesterday, Sinar Harian quoted Amir as saying that monthly withdrawals would give the opportunity for contributors to receive yearly dividends with the remaining savings they had.
He said not many opted for monthly withdrawals at present and this provided space for EPF to promote it more.
Amir said further research and discussions with the government are necessary before decisions can be made.