Husin said at his age, he could be hit by an unexpected illness and with the new withdrawal policies, he would have enough funds for any emergency.
“At this age, I don’t know when I may fall sick. It’s difficult if we are only able to withdraw little by little, but with the new change in policy by EPF, it makes things a lot easier now,” he said.
EPF chief executive officer Shahril Ridza Ridzuan announced on Thursday that the “Age 55 and Age 60” withdrawal policies had been enhanced and simplified to enable members to make partial withdrawals of any amount at any time.
He said the improved flexibility was opposed to the current policy that only allowed withdrawals of a minimum RM2,000 once every 30 days.
“Members who choose to make monthly withdrawals will be able to withdraw from as low as RM100 per month, as opposed to RM250 under the current policy,” he said.
The changes were part of four enhancements to EPF’s schemes and policies which will take effect next month.
Husin Abdul Rahman, 55, who works as a technician, also welcomed the changes to the withdrawal policy as they gave more flexibility to contributors, including allowing them to use their savings to meet the rising cost of living.
He said contributors could also use the EPF savings to invest.
“I think it’s interesting that we can withdraw the money and use it for our living expenses.
“Before, when the withdrawal was restricted, it was difficult to plan because we could only withdraw little by little and not all at once,” he said when met at the Petaling Jaya EPF branch.
While acknowledging that the more flexible EPF withdrawals would help many people, Sunway University’s professor of economics Yeah Kim Leng cautioned contributors to be wise in how they planned for their post-retirement.
Yeah said allowing contributors to have some flexibility to meet urgent needs should be encouraged, but contributors needed to make sure they spent wisely as their savings would diminish.
“Without the flexibility provided and with a lack of access to their retirement savings, they may need to resort to borrowing and that would be a great concern.
“The only worry is whether after the withdrawals, they will have adequate savings.
“The withdrawals could increase their spending and could lead to lower retirement savings. This may result in a situation where the retirement savings are not enough for the contributors,” Yeah told FMT.
A financial planner, meanwhile, praised the move by EPF and said it was good from the retirement planning perspective.
“The money belongs to the EPF member who has reached the age where they can withdraw their retirement fund, and the lower minimum amount for regular withdrawals should be welcomed,” said Lee Khee Chuan.
He said he was impressed that EPF had been responsive to the needs of its older members by providing more flexibility and options for withdrawals.