The proposed monthly pension payout plan under EPF will only apply to new members once implemented, says deputy finance minister Lim Hui Ying.
Lim said the withdrawal rights of existing members remain unchanged, and any move to the new structure would be voluntary.
She also said that under the proposal, EPF savings would be split into two sections: flexible savings, which can be withdrawn anytime, and income savings, which would be paid out periodically until fully utilised.
“This is only an initial proposal, and the Madani government is committed to gathering public feedback and conducting comprehensive engagement before any implementation.
“The goal is clear … to ensure Malaysians can manage their retirement savings in a more structured, fair and sustainable way,” she said in a Facebook post.
Currently, EPF members can withdraw their full balance at age 55, but the government is studying a monthly payout option to provide a more stable post-retirement income alongside the lump-sum withdrawal, according to the 13th Malaysia Plan tabled on Thursday.
However, EPF has said it is reviewing the plan and any decision would follow consultations with stakeholders to ensure the long-term interests of members are protected.
At present, EPF savings are split into three accounts: Account 1 for retirement, Account 2 for selected pre-retirement needs, and Account 3 for flexible, short-term use.
The retirement fund has delivered among the highest dividend returns for government-linked investment institutions, paying 6.3% for both conventional and shariah savings in 2024.
