EPF members still prefer lump-sum withdrawal
Published: Dec 15, 2010 11:25 AM | Updated: Dec 15, 2010 3:27 PM
Lump sum withdrawals of the Employees Provident Fund (EPF) savings continue to be a preferred retirement withdrawal among members so far.
Lump sum withdrawals of the Employees Provident Fund (EPF) savings continue to be a preferred retirement withdrawal among members so far.
EPF chief executive officer Azlan Zainol said that the number of applications approved for such withdrawals increased marginally from 32,446 applications in the third quarter (Q3) of 2009 to 32,752 applications in Q3 this year.
However, total savings withdrawn under this category during the quarter under review had decreased to RM1,377 million compared to RM1,411 million in the corresponding period last year, he said in a statement in Kuala Lumpur today.
Azlan said that the unaudited third quarter results also showed a growing number of members opting for staggered withdrawals of their retirement savings upon reaching the age of 55.
The total number of applications received for Flexible Age 55 withdrawals in Q3 2010 grew by 37.6 percent to 17,099 applications from 12,427 in the corresponding period last year.
Total value of withdrawals also grew 13.6 per cent from RM557.05 million in Q3 2009 to RM633 million in Q3 2010.
"If in the past many looked forward to making a lump sum withdrawal of their savings upon reaching the age of 55, there is today an increasing number of applications for smart flexible withdrawals," said Azlan.
Seeking alternative avenues
The third quarter review also saw an increase in Members' Investment Withdrawal which grew 30.09 percent to RM1.14 million from RM872.9 million in Q3 2009, while applications approved increased by 21.9 percent to 135,833 (Q3 2009: 111,418).
"With the Malaysian economy reporting a buoyant outlook, more Malaysians are taking the opportunity to seek alternative avenues to grow their savings in EPF-approved investment funds.
"This clearly demonstrates that contributors are becoming more informed of the current market outlook and the confidence they are placing in the government economic transformation programme," Azlan added.
On the application for withdrawals of savings of more than RM1 million, it showed an increase of 93.96 percent to 353 applications in Q3 2010 from 182 applications in Q3 2009.
This increase was attributed to the revised lower minimum amount permitted for withdrawals which was reduced from RM100,000 to RM50,000 in April 2010 thus permitting more members to be eligible.
The total amount withdrawn increased 17 percent from RM70.9 million in Q3 2009 to RM82.98 million in Q3 2010, the statement added.
EPF chief executive officer Azlan Zainol said that the number of applications approved for such withdrawals increased marginally from 32,446 applications in the third quarter (Q3) of 2009 to 32,752 applications in Q3 this year.
However, total savings withdrawn under this category during the quarter under review had decreased to RM1,377 million compared to RM1,411 million in the corresponding period last year, he said in a statement in Kuala Lumpur today.
Azlan said that the unaudited third quarter results also showed a growing number of members opting for staggered withdrawals of their retirement savings upon reaching the age of 55.
The total number of applications received for Flexible Age 55 withdrawals in Q3 2010 grew by 37.6 percent to 17,099 applications from 12,427 in the corresponding period last year.
Total value of withdrawals also grew 13.6 per cent from RM557.05 million in Q3 2009 to RM633 million in Q3 2010.
"If in the past many looked forward to making a lump sum withdrawal of their savings upon reaching the age of 55, there is today an increasing number of applications for smart flexible withdrawals," said Azlan.
Seeking alternative avenues
The third quarter review also saw an increase in Members' Investment Withdrawal which grew 30.09 percent to RM1.14 million from RM872.9 million in Q3 2009, while applications approved increased by 21.9 percent to 135,833 (Q3 2009: 111,418).
"With the Malaysian economy reporting a buoyant outlook, more Malaysians are taking the opportunity to seek alternative avenues to grow their savings in EPF-approved investment funds.
"This clearly demonstrates that contributors are becoming more informed of the current market outlook and the confidence they are placing in the government economic transformation programme," Azlan added.
On the application for withdrawals of savings of more than RM1 million, it showed an increase of 93.96 percent to 353 applications in Q3 2010 from 182 applications in Q3 2009.
This increase was attributed to the revised lower minimum amount permitted for withdrawals which was reduced from RM100,000 to RM50,000 in April 2010 thus permitting more members to be eligible.
The total amount withdrawn increased 17 percent from RM70.9 million in Q3 2009 to RM82.98 million in Q3 2010, the statement added.
- Bernama
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