EPF’s Proposal For Periodic Withdrawals Upon Retirement Sparks Debate
EPF contributors aged 55 years might face periodic withdrawals rather than receiving a lump sum upon reaching 55 years old.
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The government’s plan to refine a proposal that will only allow new contributors of the Employee Provident Fund (EPF) to make periodic withdrawals from their savings has sparked mixed reviews from netizens.
According to the New Straits Times, EPF is looking to institute periodic withdrawals for new contributors once they hit retirement age, rather than receiving a lump sum at 55 years old.
In the report, it was also noted that Prime Minister Datuk Seri Anwar Ibrahim pointed out that he had no objections to this proposal.
I have no objection. The proposal is still in the final stages. However, if we listen to the statement made by EPF’s chief executive officer Datuk Seri Amir Hamzah Azizan earlier, there are some restrictions, especially for those who have insufficient savings
Prime Minister Datuk Seri Anwar Ibrahim
NST also reported Amir Hamzah pointing out that these periodic withdrawals would offer contributors a better opportunity to manage their retirement funds.
In the meantime, this proposal by EPF sparked a heated debate on social media regarding the freedom of contributors to manage their retirement savings.
Twitter Users Debate The Pros And Cons Of This Proposal
While some argue for the freedom to withdraw EPF funds as a lump sum after retirement, others believe that periodic withdrawals could ensure financial security in the long run.
Twitter user @sinach_z strongly advocated for the freedom to withdraw EPF funds as desired, stating that pensioners should get freedom to withdraw their own EPF money after retirement.
This is bullshit. We should get freedom to withdraw our own EPF money after retired. Let us decide how we manage our fling money lah. Fuck y'all if this going to pass. Fuck fuck. https://t.co/mCXx2sEtDR
— tukang karrut (@sinach_z) July 7, 2023
This sentiment was echoed by @OnlyWanAmir and @kamilah_notes, who believe that making it an option, rather than compulsory, would be a fair approach.
It should be an option for contributors to choose. Not make it mandatory. https://t.co/fEAOu1IEOd
— Amir Amin (@OnlyWanAmir) July 7, 2023
On the other hand, @benalsagoff676 emphasized the importance of providing contributors with the choice between a lump sum or periodic withdrawals, suggesting that denying them this right is unjust.
On the other hand, there are individuals who support EPF’s latest proposal.
Twitter user @_piqaaaaaaa commended the decision, stating that this is a good decision because she personally knew many people exhaust their retirement savings in less than five years.
This is a good decision la I think bcs I knew numbers of people exhausted their retirement’s savings less than 5 years. It’s scary yknow https://t.co/Ti99fyF7Ip
— ぴか (@_piqaaaaaaa) July 7, 2023
In conclusion, while unrestricted access to EPF funds may grant retirees more control over their finances, it also raises concerns about the sustainability of those funds throughout retirement.
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