New EPF Pension-Style Withdrawal Applies Only to Future Members, Says Deputy Minister

A new pension-style withdrawal structure under the Employees Provident Fund (EPF) will apply only to new members who register after the scheme is implemented, Deputy Finance Minister Lim Hui Ying told the Dewan Rakyat on Thursday (Aug 7).

“This structure is designed to strengthen income security in old age and support more sustainable financial planning,” she said. Existing EPF members will retain their current withdrawal rights but may opt in voluntarily.

EPF Pension

The new system will divide retirement savings into two portions: one for flexible withdrawal and the other for monthly income during retirement.

Lim also addressed concerns over EPF’s investment performance, noting a 13% drop in Q1 2025 returns, mainly due to global equity market challenges. However, she assured, “We expect a positive response and rebound in the second quarter of 2025.”

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