More EPF members opt for flexible withdrawals

MORE members of the Employees Provident Fund (EPF) are opting for flexible withdrawals as they reach 55 years of age to better manage their retirement savings.

In a statement yesterday, the EPF said the Flexible Age 55 Withdrawal saw a significant increase in its take-up rate during the first quarter of 2009

On a year-on-year basis, it increased by 85.46 per cent compared with 5,247 applications in the corresponding period last year," it said.

EPF chief executive officer Datuk Azlan Zainol said the growing popularity of the Flexible Age 55 Withdrawal signified increased awareness among members that lump sum withdrawal would likely lead to inadequate income during retirement.

"The Flexible Age 55 Withdrawal was introduced in November 2007 under the 'Beyond Savings' initiative. It offers members the option to receive their EPF funds in instalments and on an ad hoc basis," he said.

Zainol said nevertheless, the Lump Sum Age 55 Withdrawal plan is still the more popular option for members reaching age 55.