Persatuan Pesara Kerajaan dan Swasta (Pejasama) president Azih Muda said such flexibility was necessary as some retirees might prefer access to a large sum of money to make significant purchases after completing their service.

“If the pension is paid monthly, we can’t predict how long a person will live. Therefore, the option to withdraw a lump sum should be made available, provided it is consented to by the civil servant concerned in writing,” he told FMT.

Azih said the government should hold in-depth discussions with all stakeholders, noting that the views of those in leadership often differ from those in the lower grades of the civil service.

“Those holding positions in lower grades but who have worked for 30 or 40 years may want to use their retirement money to build a house or perform the haj, but they are not able to access all their funds at once,” he said.

He was commenting on the proposed reforms to the SSPA, which is expected to retain the monthly pension payment model.

Yesterday, public service director-general Wan Ahmad Dahlan Abdul Aziz described the proposal as a proactive move, citing cases of pensioners falling victim to scams as a key concern, along with the need to manage retirement savings more efficiently.

Wan Ahmad Dahlan also said the proposal had received backing from the finance ministry and EPF, both of which are involved in the review of the SSPA.

Azih however said the government should conduct a thorough study of the proposal to avoid complications.

“A comprehensive review is needed to weigh the benefits and drawbacks,” he said.

On concerns about scams, Azih said that retirees today were more informed thanks to widespread media coverage and financial literacy efforts.

“They must understand the risks and responsibilities involved, and they need to be smart about managing their finances,” he said.