EPF mulling two-tier account system to support post-retirement income, says deputy finance minister
Published on: Sat, Aug 02, 2025
By: Malay Mail Text Size: The EPF's proposed two-tier structure — separating savings into flexible and income accounts — aims to provide members with a more stable post-retirement income. — Picture by Choo Choy May Kuala Lumpur: The Employees Provident Fund (EPF) is proposing a two-tier restructuring of members' retirement savings to provide a more stable and sustainable income stream after retirement, Deputy Finance Minister Lim Hui Ying said today. In a Facebook post, she said the proposed new structure will split future EPF contributions into two components — a Flexible Savings account, which members can withdraw at any time, and an Income Savings account, which will be disbursed periodically until depleted. 'This is a key step towards ensuring members have a structured and reliable income during retirement,' she said. Lim stressed that the proposed changes will not affect the existing withdrawal rights of current EPF members. The new structure will apply only to new members after the implementation date, while existing members may choose to opt in voluntarily. She added that the proposal is still in its early stages and that the government is committed to gathering public feedback before proceeding. 'The Madani government will continue to listen to the people and conduct thorough engagement sessions before any implementation. The aim is clear — to help Malaysians manage their retirement savings in a more structured, fair and sustainable way,' she said. The proposed reform is part of the government's broader push to improve long-term financial security for retirees, amid concerns about premature withdrawals and the adequacy of savings in later years. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available.
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