Tuesday, July 17, 2012

Retirement age is raised to 60 - Consequently EPF withdrawal is at age 60

Because retirement age is raised from 55 to 60, full withdrawal of your EPF can only be made upon attaining age 60. At least that is what I understand from what I read in the local mainstream media today.

Last month, Human Resources Minister, Datuk Seri Dr S. Subramaniam clarified to the media in Kuala Lumpur that no decision has been made by the government on the age limit for the Employees Provident Fund (EPF) withdrawal for private sector employees yet. He advised EPF subscribers not to believe in rumours or speculations that those from the private sector could only make their EPF withdrawal after they had reached 60 years old.

Today, The Star Online reported that Deputy Finance Minister Datuk Donald Lim Siang Chai said 'the decision had been made and it was only a matter of time' before the amendment would come into effect.

If you ask me, I would like to see options. If I retire at age 55 instead of the (would be) mandatory retirement age of 60, I want to be able to withdraw my contributions at that age. Not everyone would want to retire at 60, mind you.

Leaving us with no option is one thing. Government ministers issuing contradicting statements about the amendment is not less than embarrassing. If you force me to keep my money with EPF for additional 5 years, then I won't stage a war with you. Just do it professionally without making yourselves look like a dis-organised institution.

Re-cap of The Star Online report:
Full EPF withdrawal at 60
July 17, 2012

PETALING JAYA: The age for full withdrawal from the Employees Provident Fund (EPF) by contributors will be raised to 60 years and partial withdrawal to 55.

The planned amendment to the Employees Provident Fund (EPF) Act 1991 follows the passing of the Minimum Retirement Age Bill 2012 in Parliament last month which extends the minimum retirement age for private sector employees from 55 to 60.

“It is a consequential move. Once we raise the minimum retirement age, we have to raise the age of EPF withdrawal as well,” said Deputy Finance Minister Datuk Donald Lim Siang Chai.

He said the decision had been made and it was only a matter of time before the amendment would come into effect. Currently, contributors can make partial EPF withdrawal at 50 and full withdrawal of their savings upon retirement at 55.

However, Lim said they were looking at providing a transition period for contributors who have already planned to withdraw their contributions within the next few years.

“We have not finalised the transition period, but it will be between three and five years,” he said adding that during this period, contributors who reached the age of 55 could still make full withdrawals.EPF contributors had expressed concern about whether the age for full EPF withdrawal would be raised.

You can read further at: http://thestar.com.my/news/story.asp?file=/2012/7/17/nation/11676473&sec=nation

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