Kuala Lumpur: 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 highlighted 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.

According to BERNAMA News Agency, Ahmad Zulqarnain stated that if Malaysia is serious about preparing for a 100-year life, there must be a fundamental rethinking of how people work, save, engage, and care throughout all stages of life. He noted 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.

Efforts are being intensified 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. Ahmad Zulqarnain made these remarks during his closing speech at the International Social Wellbeing Conference 2025, themed 'Living to a Hundred: Are We Prepared?' held today.

As Malaysians live and work longer, Ahmad Zulqarnain proposed that 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. He emphasized that the EPF remains committed to turning this challenge into an opportunity by delivering retirement solutions that are inclusive, sustainable, and future-ready.

He concluded by stating that the shared responsibility is to build systems that enable Malaysians to age with dignity and social connection.