Govt considers pension-style EPF withdrawals: Amir Hamzah
Finance Minister II Datuk Seri Amir Hamzah Azizan said the new system may initially apply only to new EPF members, while existing contributors could be given the option to transition to the revised structure voluntarily.
He added that the idea, aimed at preventing contributors from depleting their savings too quickly, is being refined and has already been addressed by the Economic Planning Unit.
"The main idea is to develop a more sustainable system such as a pension system where savings are not withdrawn in one lump sum, but paid out monthly," he said at the 2025 National Tax Conference her today.
Amir Hamzah noted that many EPF contributors tend to exhaust their savings soon after retirement, which often leads to financial difficulties in their later years.
As such, the government is taking a cautious and comprehensive approach in evaluating the long-term implications of the proposed reform.
"This is to replace the current lump sum withdrawal system. If the proposal is accepted, its implementation will be practical and phased," he added.
The government's broader objective is to build a more resilient and inclusive retirement framework that ensures long-term financial security for all Malaysians, he added.
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