EPF funds should be for old age

by | Nov 29, 2023 | NATIONAL, NEWS | 0 comments

Employees Provident Fund (EPF) account holders have been advised to hold on to whatever savings they have in the retirement fund for old age as the worst of the economic recession is now behind us.

Economic experts readily agree with the unity government’s stance to refuse calls for another round of special withdrawal and state that this is a prudent and wise decision which shows that the government is acting responsibly.

Just last week, it was reported that 6.3 million EPF members or approximately 48 percent of contributors, have less than RM10000 in their accounts which raises concerns on how they will cope with retirement.

The Socio Economic Research Centre (SERC) also came out in strong support of the government’s decision and feel that there is no justification for another round of EPF withdrawal and people’s savings must remain in the EPF.

SERC stated that the previous three rounds of withdrawals were to meet cash flow problems suffered by EPF contributors during the Covid 19 pandemic and it was just a short term, stop gap measure.

Anyway in April next year, EPF plans to introduce a third EPF account or “flexible” account which will provide contributors the chance to overcome short term cash flow problems in the event of any disaster.