The Malaysian government is considering a monthly pension payout under the Employees Provident Fund (EPF) for retirees. This will be in addition to the current lump sum withdrawal, with contributions being split into retirement savings and pension.
“Through this effort, workers will be able to withdraw a portion of their savings while also receiving a monthly pension upon reaching retirement age”, according to the 13th Malaysia Plan report. Beyond that, the report also mentions the development of a digital platform to encourage the transfer of funds from children to their parents top sustain life after retirement.
On the flip side though, the report also mentions the possibility of the government raising the mandatory retirement age. This will be done via the revising of the Minimum Retirement Age Act 2012. “The proposal to raise the mandatory retirement age according to their service scheme will be studied in order to enable a revision of the Pensions Act 1980 to be implemented”, the report notes.
According to the report, Malaysia has transitioned into an ageing nation back in 2021, when those aged 65 and above make up 7% of the country’s population. These measures are to prepare for when the country becomes an aged nation, which is predicted to happen by 2043.
(Source: Ministry of Economy)
