The Employees Provident Fund (EPF) is focusing on rebuilding members’ retirement savings following large-scale withdrawals during the Covid-19 period. Finance Minister II Datuk Seri Amir Hamzah Azizan said a total of RM145 billion was taken out through four special facilities: i-Lestari, i-Sinar, i-Citra, and the Special Withdrawal programme.

In total, 8.2 million contributors used these schemes to ease financial pressures during the pandemic.

Strengthening Retirement Savings

Amir Hamzah told the Dewan Negara that the government’s current priority is to strengthen contributors’ retirement savings and ensure members have sustainable income after leaving the workforce.

“Therefore, the focus is now on strengthening retirement savings and ensuring that members enjoy a sustainable retirement income,” he said during a question-and-answer session.

He was responding to a query from Senator Hasbi Muda on whether Malaysians still had adequate savings for their retirement needs.

No Plans for Further Withdrawals

The minister clarified that the government does not intend to introduce new withdrawal schemes. The EPF has recently restructured its accounts into Account 1, Account 2, and Account 3, with Account 3 designed as a flexible fund that can be accessed in times of emergency. This structure, he explained, provides contributors with more flexibility without undermining their long-term savings goals.

Exploring monthly pension payments

Looking ahead, the EPF is also studying a proposal to introduce a monthly pension payment scheme for new members. Amir Hamzah said the initiative is still under review but is expected to be approved in the coming years.

If implemented, existing contributors would be given the option to switch to the pension model. The scheme is intended to provide members with steady, long-term income in retirement, complementing the broader goal of ensuring financial security for Malaysians in their later years.

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• TAGS:
• Covid-19
• Datuk Seri Amir Hamzah Azizan
• Employees Provident Fund (EPF)
• EPF
• Retirement Savings