MELAKA, Oct 18 (Bernama) -- Monthly retirement savings withdrawals under the Employees Provident Fund’s (EPF) i-Emas retirement savings scheme could help retirees manage their finances more systematically while reducing the risk of exhausting their savings within a short period.
Private sector employee Kalpita Jatin Doshi, 30, said the approach was appropriate as it provided retirees with a regular income stream, particularly those who faced difficulties securing employment or a steady source of income after the age of 55.
The reservation executive said staggered withdrawals would enable retirees to control their daily spending while allowing the remaining savings in their EPF accounts to continue earning annual dividends.
“The i-Emas initiative is very good as it provides a continuous monthly income, with a minimum withdrawal of RM100.
“If EPF savings are withdrawn in a lump sum, there is a risk of the money running out quickly. Monthly withdrawals not only help manage spending but also allow the remaining savings in EPF accounts to continue earning annual dividends,” she told Bernama.
Sales executive Muhammad Uzaibah Fathiha Mohd Taib, 28, said the facility also allowed EPF members to plan their long-term finances in a disciplined manner, particularly to meet their needs after retirement.
He said early planning was important to ensure that savings accumulated throughout their working lives could sustain them during retirement, which could last for many years.
“As young people, having a long career ahead of us allows us to accumulate as much savings as possible.
“Having a scheme like this allows us to plan our long-term finances better for retirement, family needs, housing and activities in our later years,” he said.
The i-Emas scheme was announced under Budget 2027, which allows eligible members to receive monthly payments from their Age 55 and Age 60 Withdrawals instead of withdrawing their entire savings in a lump sum, while the remaining balance in their EPF accounts continues to earn annual dividends.
The approach aims to help members manage their post-retirement cash flow more systematically and extend the period over which their savings can be used to meet daily needs.
-- BERNAMA