EPF said there is no plan to change the current mechanism of lump sum withdrawals at age 55 and 60 for existing members, with monthly withdrawals only for those who voluntarily opt-in.

“The first payout under the mandatory option is only expected to be made when these new members retire, some decades in the future.

“This proposal is still being refined, and EPF assures that any decision regarding the mandatory monthly withdrawal option will only be made with careful consideration and alignment with EPF’s commitment to the future interests of its members,” it said in a statement.

Last week, the government said that it was finalising the details of a proposal to make it mandatory for retirees to make monthly EPF withdrawals when they reach the age of 55.

Prime Minister Anwar Ibrahim, who is also the finance minister, said Putrajaya had no objections to the proposal but it would depend on EPF’s capacity.

EPF CEO Amir Hamzah Azizan also reportedly said that monthly withdrawals from EPF would give the opportunity for contributors to receive annual dividends from their remaining savings.

According to a report by Sinar Harian, Amir said not many opted for monthly withdrawals at present, and this enabled EPF to promote the new withdrawal method.