I M This Close To My Epf Money Don T Push It Further

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There was a big fuss recently because, apparently, the World Bank wants Malaysians to only withdraw their Employees Provident Fund (EPF) at 65.
Okay, fine. It wasn’t such a big fuss because the only people creating the fuss were those more or less in my age group. So basically, all the uncles and aunties at the mamak who are choking on their teh tarik and roti canai.
Let me be frank. I’m basically the average Malaysian income earner. Not filthy rich, but not poor. Just a normal urbanite, paying bills, raising a family and figuring life out.
I’m already 47 years old, and if things go according to plan, I’ll finally get access to my EPF in a few years. If the government suddenly tells me that I can’t and I have to wait a few more years, I’ll be upset.
ADSIt’s not because I don’t understand long-term financial planning, but because I’ve already been planning based on the rules we have now. It wouldn’t be fair to change the rules when I’m almost at the end of the line.
EPF savings have multitude of uses
I’m not going to pretend I’m better than those who have plans to use their EPF money to pay off debts. I am planning to use some of my EPF to pay off loans, too, and maybe fund my kids’ education. I would be lying if I said I wasn’t counting on that when the time comes.
It’s not that I don’t want a steady income in old age, but I do have commitments that could benefit from some lump sum payments and not just tiny drips of monthly retirement allowance.
So when someone says we should keep the money in EPF longer for our own good, it does feel a bit like talking is easier than doing.
In general, most Malaysians don’t see EPF as a pension. We see it as the one guaranteed lump sum we’ll ever have in life. It’s our emergency fund, renovation fund, education fund, midlife crisis fund, investment capital and even holiday fund.
If the government suddenly extends the withdrawal age, decades of financial expectations and planning will be disrupted.
But to be clear, the World Bank didn’t actually say that Malaysia must delay EPF withdrawals to 65. They just pointed out that Malaysians are living longer, and pulling everything out at 55 means there’s a high chance we could be dried out by 70.
Many people don’t realise this because 55 used to feel old. Now, 55-year-olds are running marathons, playing basketball, and starting podcasts.
We have two to three more decades after retirement to survive, and that’s not cheap because ageing comes with medical bills, reduced income, and inflation that’s speeding faster than drivers on the Federal Highway.
There really is a lot to think about when it comes to this issue. A 55-year-old accountant in Kuala Lumpur can probably still work and earn, but a 55-year-old construction worker in Kedah who has been labouring his whole adult life might not be able to.
We shouldn’t punish people whose bodies literally cannot handle more years of hard work.
ADSGradual reforms?
Maybe these reforms can be done gradually. Start by aligning withdrawals to 60 or 65 years old for people who are younger and just entering the workforce.
Tell people now so they can plan early. Don’t tell people just before they’re about to collect. It’s like cancelling a wedding after the catering deposit has been paid.
We can also provide options for those who want to withdraw early to be able to do so and reward those who choose to keep their money growing with better dividends or annuity incentives. Make delayed withdrawal feel like a rewarding investment and not a burden.
There is another issue that is being discussed. The EPF total investment assets are coming close to RM2 trillion.
With that kind of money, we could build things to benefit our ageing society. We could build more public transport so retirees don’t have to drive, develop proper elderly housing and healthcare centres.
We also can’t avoid the fact that there is a trust deficit against the government. Malaysians don’t panic because they hate saving. They panic because they’re scared that by the time they’re allowed to withdraw, the money will have been squandered.
If the government wants people to accept delaying withdrawals, they have to be transparent. Tell us the investment plan, how things are being spent, and what the projected earnings are.
The fear is waiting until 65, logging in to the EPF app and seeing that the compounded amount isn’t what it’s supposed to be.
At the end of the day, I don’t think Malaysians are against planning for the future. We just want a retirement system that respects how we live, how we earn, and how we struggle.
We don’t need nagging lectures about how we should have invested smarter when we were 25 and broke. - Mkini
ZAN AZLEE is a writer, documentary filmmaker, journalist and academic. Visit fatbidin.com to view his work.
The views expressed here are those of the author/contributor and do not necessarily represent the views of MMKtT.

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