EPF retirement withdrawals up in third quarter

(Bernama) — Some RM1.97bil was withdrawn under the Employees Provident Fund Retirement Withdrawals in the third quarter of 2009, an increase from the RM1.64bil in the corresponding period last year.

Some RM1.41bil of the RM1.97bil, was withdrawn as Lump Sum Age 55 Withdrawal, up 14.2% from that in Q3 2008, EPF said in a statement on its unaudited results on Wednesday.

EPF chief executive officer Tan Sri Azlan Zainol said the remaining RM557.05mil was withdrawn under the Flexible Age 55 Withdrawal, up 38.05% from the RM403.51mil last year.

“Nonetheless, 72% of retirement withdrawals still consist of lump sum withdrawals. We hope to see this amount decrease over time as more members become increasingly aware that lump sum withdrawal will likely lead to income inadequacy during retirement,” he said.

Azlan said members had exercised greater prudence and care in making withdrawals for housing as showed by a more cautious behaviour due to the present economic conditions.