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.
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.
