Cashing Out Too Soon Lump Sum Withdrawals Risky As Malaysians Face Longer Lifespans Says Epf

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EPF chief executive officer Ahmad Zulqarnain Onn said that only a small proportion of EPF members currently meet the basic savings threshold, while over 58 per cent of working-age Malaysians are not contributing to any formal retirement scheme. — Bernama picKUALA LUMPUR, June 18 — The practice of lump sum retirement withdrawals may jeopardise long-term financial security and increase the risk of retirees outliving their savings, said Employees Provident Fund (EPF) chief executive officer Ahmad Zulqarnain Onn.
He said that only a small proportion of EPF members currently meet the basic savings threshold, while over 58 per cent of working-age Malaysians are not contributing to any formal retirement scheme.
“If Malaysia is serious about preparing for a 100-year life, we must fundamentally rethink how we work, save, engage and care, across all stages of life,” he said.
Ahmad Zulqarnain added that the EPF is exploring enhanced accumulation strategies, including structured monthly withdrawal options, to help members manage longevity risks and ensure the sustainability of their retirement savings.
“We are intensifying efforts to promote retirement literacy, particularly among youth, informal workers and vulnerable groups, to build a culture of long-term saving and informed financial decision-making,” he said during his closing remarks at the International Social Wellbeing Conference 2025, themed “Living to a Hundred: Are We Prepared?” held here today.
As Malaysians live and work longer, he said the country must eventually align the full EPF withdrawal age with the national minimum retirement age to ensure a more coherent and secure transition into later life.
“The EPF remains committed to turning this challenge into an opportunity by delivering retirement solutions that are inclusive, sustainable and future-ready,” he said.
“Our shared responsibility is to build systems that enable Malaysians to age with dignity and social connection,” he added. — Bernama

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