Kuala lumpur: The proposed implementation of monthly pension-style payments for Employees Provident Fund (EPF) members, announced during the tabling of the 13th Malaysia Plan (13MP), will not affect the withdrawal rights of existing members, said Deputy Finance Minister Lim Hui Ying. She clarified that the new mechanism, announced by Prime Minister Datuk Seri Anwar Ibrahim, would apply only to new members registering after its enactment. Existing members, however, have the option to opt in voluntarily.

According to BERNAMA News Agency, the proposed restructuring of EPF accounts will introduce a system that allocates part of members’ savings specifically for regular income during retirement. Deputy Finance Minister Lim Hui Ying elaborated on this during a Dewan Rakyat session, explaining that this change is aimed at ensuring members’ savings endure throughout their retirement years, particularly as life expectancy continues to rise.

Lim further explained that once members reach the minimum retirement age, their savings will be divided into two main components: flexible savings, which can be withdrawn at any time according to members’ needs, and income savings, which will be disbursed regularly or monthly until exhausted. This new structure seeks to bolster retirement income security and promote sustainable financial management for EPF members.