She said the new structure would be divided into two components, the first involving a flexible savings component from which withdrawals can be made any time according to the member’s needs.

The second component would be retirement income savings, where the member’s savings would be distributed periodically or monthly until fully depleted.

“This (proposed structure) would only apply to new members who register after the implementation date.

“Once implemented, existing members who wish to opt in to the proposed structure may also be allowed to do so,” Lim said during the question-and-answer session in the Dewan Rakyat today.

She was responding to Jimmy Puah (PH-Tebrau), who had asked about the government’s steps to implement the proposal and re-evaluate the EPF savings withdrawal methods.

Lim said there were no changes to the existing EPF withdrawal policy, namely the option to withdraw savings at the age of 55 and 60.

“Currently, members have the flexibility to withdraw their savings in a lump sum, partially, or through periodic payments,” she said.

As of Aug 31, there were 16.5 million EPF members with savings totalling RM1.31 trillion, a 9.9% increase from RM1.20 trillion in 2024, and 20.8% against RM1.01 trillion in 2023.

Of the 16.5 million members, nine million or 55% are active contributors, with total savings of RM1.07 trillion.