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The Bank recommends that the qualifying age for social pensions be progressively raised to between 65 and 70 years - October 30, 2025
World Bank says raising the withdrawal age would better align with Malaysia’s demographic realities and improve retirement adequacy
THE World Bank has described Malaysia’s Employees Provident Fund (EPF) withdrawal age of 55 as too low given the country’s rapidly ageing population, recommending a gradual increase to between 65 and 70 years.
In its latest report titled ‘Should Malaysia Expand Its Social Pension? Global Evidence, Design Issues and Options’, launched on Thursday, the World Bank said raising the withdrawal age would better align with Malaysia’s demographic realities and improve retirement adequacy.
“A higher access age for retirement withdrawals would also allow for higher average benefits for those receiving social pensions,” the report stated.
It further recommended that the qualifying age for social pensions be progressively raised to between 65 and 70 years to ensure the long-term sustainability of Malaysia’s social protection system, in line with the nation’s increasing life expectancy. - October 30, 2025
