KUALA LUMPUR: The government is exploring a proposal to offer monthly pension payouts under the Employees Provident Fund (EPF), complementing the existing lump-sum withdrawal option, The Edge Malaysia reported.
According to the 13th Malaysia Plan report, the move aims to provide retirees with a more consistent income stream after retirement.
The proposed mechanism would split EPF contributions into two parts — one for lump-sum withdrawals and another for a monthly pension upon retirement.
window.googletag = window.googletag || {cmd: []};googletag.cmd.push(function() {googletag.defineSlot('/22826383987/dailyexpress_inline', [1, 1], 'gpt-passback').addService(googletag.pubads());googletag.enableServices();googletag.display('gpt-passback');});At present, members can fully withdraw their EPF savings upon reaching 55 years old, with funds accumulated in three distinct accounts.
Account 1, the Retirement Account, is reserved for post-retirement use, while Account 2 supports pre-retirement needs such as housing, education, and medical expenses.
Account 3, introduced in 2024, is a more flexible option that allows members to withdraw funds at any time to manage short-term needs.
The EPF, which recently declared a 6.3 per cent dividend for both conventional and Shariah savings, remains a key pillar in Malaysia’s retirement landscape alongside funds like ASB, ASN, and Tabung Haji.
