More opting for EPF flexible withdrawals
SIGNIFICANT GROWTH: Members are managing their retirement savings better, says CEO
KUALA LUMPUR: MORE Employees Provident Fund (EPF) contributors are opting for flexible withdrawals upon reaching 55, either on a monthly basis or through partial withdrawals.
EPF chief executive officer Tan Sri Azlan Zainol said this showed that more members were becoming financially savvy to better manage their retirement savings, in view of the increase in life expectancy of Malaysians.
He said the total applications approved for EPF's Flexible Age 55 Withdrawals surged 42.90 per cent to 37,602, compared with 26,313 in the same quarter last year.
"The total amount withdrawn under flexible withdrawals has increased by 53.99 per cent, amounting to RM1.51 billion compared with RM981.37 million in the second quarter of last year," he said in a statement yesterday.
Azlan said in the light of the increase in life expectancy, flexible withdrawals had gained ground among members, who had reached 55, since its introduction in 2007.
"It is heartening to note that the total applications for Flexible Age 55 Withdrawals in the second quarter had increased significantly by 178 per cent, compared with 13,533 applications during the same period in 2009, as members become more aware of the need to enhance and stretch their retirement savings."
He said that apart from flexible withdrawals, members could also opt for lump sum withdrawals after 55.
Azlan said the increase in members' awareness on the importance to manage their retirement savings efficiently could be seen further when total applications approved for Lump Sum Withdrawal saw only a nominal growth of 1.62 per cent during the same period, with 44,391 applications compared with 43,683 applications in the same quarter last year.
The amount withdrawn during the second quarter for Lump Sum Withdrawal amounted to RM1.86 billion, up 11.24 per cent from RM1.67 billion in the same quarter last year.
Under Education Withdrawal, total applications approved had increased 19.85 per cent to 16,677 applications during the second quarter, from 13,915 during the same period last year, with total amount withdrawn RM73.70 million compared with RM67.53 million in the corresponding period last year.
Comments
Post a Comment