Tuesday, 28 April 2015

Cheers for maintaining status quo on EPF savings withdrawal age

The recent controversy on the proposal by Employees Provident Fund (EPF) to increase the retirement savings withdrawal age from 55 to 60 ended with a welcomed announcement by Prime Minister Najib Razak for members to retain the right to make the withdrawal at the age of 55. Any new enhancement by EPF will affect new contributions, if members decide to work beyond the age of 55.

EPF’s proposals received wide dissatisfaction and negative responses from the general public and many sectors, including CUEPACS, civil servants and politicians. The power of people’s voice with more than 50,000 members’ feedback within two days of the recent online consultation process was well addressed by the Prime Minister.

The right of members to withdraw their hard-earned savings at 55 provides flexibility and freedom for people to plan their future according to their will and choice, without the need to wait until 60 to enjoy their savings.

The announcement provides a great sigh of relief for the Malaysian workforce and is news to be celebrated alongside with the upcoming Labour Day holiday.  Happy Labour Day, everyone J

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