PETALING JAYA: The plan to revamp Employees Provident Fund (EPF) to provide monthly pension-style payouts has sparked lively debate among Malaysians, with both retirees and active contributors voicing a mix of support and concern.
Retired banker R. Selvasingam, 67, is firmly against the proposed shift to fixed monthly disbursements.
“I totally disagree with this idea. When I retired, I opted for a partial lump sum withdrawal which allowed me to purchase a property and settle key financial commitments.
“At the same time, I left a portion of my savings in the EPF to be withdrawn gradually each year. This gave me both flexibility and long-term financial security.”
He urged the government to recognise the diverse financial realities of retirees and avoid enforcing a rigid, one-size-fits-all system.
“In my case, the lump sum helped fund my children’s education, pay their college fees and make solid, future-focused investments.
“What’s needed is a balanced approach that gives contributors the freedom to decide how to manage their hard-earned savings.”
Joseph Fernando, 69, a retired senior editor, welcomed the proposed monthly EPF payout model and praised the government’s initiative.
“I agree with the scheme. It’s a good initiative and I’m proud of the government for taking this step.”
He said while he had previously withdrawn a lump sum to buy his house, he still has savings in his EPF account.
“I used part of my EPF money to purchase my home, but I believe having a steady monthly income will help retirees manage their finances better in the long run.”
EPF contributor Nur Nafisah Hamdan supports the proposed monthly payout, saying it could offer better protection and encourage smarter financial habits.
“With monthly payouts, retirees are less likely to fall victim to scams. When someone suddenly receives a large sum of money, it can make them a target, especially if scammers get hold of their financial details,” said the 26-year-old finance executive.
She said a structured monthly income could also prevent impulsive spending and help individuals stay on track.
“As long as the monthly amount is enough to cover basic expenses, it should be manageable. But the government should still allow lump sum withdrawals for emergencies such as medical treatments or family crises.” Nur Nafisah said she trusts EPF to manage her retirement funds wisely, especially with the assurance of annual dividends on the balance.
“I think this approach could even motivate people to save more during their working years. I’d say this system might cover around 50% of my financial needs during retirement, and that’s already a big help.”