Malaysians Want Their Lump Sum!

A recent poll on Newswav showed that most Malaysians are not keen on the idea of receiving their EPF savings in monthly instalments for five years after turning 55. Out of 4,000 respondents, 69% rejected the proposal while 17% supported the five-year monthly payout plan, and 14% agreed with the concept but preferred an even longer payout period.

The proposal for monthly EPF withdrawals comes from a concern that some retirees finish their savings too quickly, leaving them struggling in their later years. By paying out in smaller, regular amounts, the idea is to ensure retirees have a steady income for a longer time, similar to a pension system. This proposal sparked a wave of debate — not because Malaysians don’t understand the importance of financial discipline, but because they feel the decision on how and when to spend their own retirement savings should remain in their hands.

While there are some who see monthly payouts as a way to avoid overspending early on, the majority feel it’s unnecessary for the government or EPF to control how members access their own money. Some said that after years of contributing, they should have the right to decide what to do with their savings — whether to budget carefully or withdraw it all at once. Others suggested it should be optional for contributors, not a mandatory policy.

Deputy Finance Minister Lim Hui Ying said the plan to introduce monthly, pension-style payouts for EPF members — announced during the tabling of the 13th Malaysia Plan — will not affect current members’ withdrawal rights. The new mechanism would apply only to members who register after it takes effect, as outlined by the Prime Minister. Existing members may opt in voluntarily if they wish.

The core issue is insufficient savings. So, whether lump sum or pay-out over a period, the majority cannot survive for another 20 years. What can be done? We could extend retirement age to 65; increase contributions by employees/employers; put in a supplementary fund from the Government or place them on a welfare scheme after exhausting their funds. Nothing is easy!

Reference:

Survey: Malaysians Want Their Lump Sum Money As 69% Say “No” to Monthly EPF Payouts, Opinion, Newswav, 12 August 2025