More opt for flexible withdrawals at age 55

Written by Personal Money
Tuesday, 18 August 2009 16:43

The take-up rate of the Employees Provident Fund (EPF)’s Flexible Age 55 Withdrawals increased substantially during 2Q2009, rising by 105.45% compared with the corresponding period last year. The withdrawal offers members the option to receive their EPF savings in instalments or on an ad hoc basis, which will help members manage their retirement savings better and stretch them to last over a longer period.

In a statement issued today, the EPF said that in 2Q2009, 13,533 applications (1Q2009: 9,731) were approved for the withdrawals, an increase from 6,587 applications in the corresponding period last year. The total amount withdrawn amounted to RM705.89 million (2Q2008 RM387.14 million).

However, more members are still opting for phased withdrawals; in 2Q2009, a total of 39,901 applications were made, an increase of 22.67% from the 32,526 approved applications in 2Q2008. The total amount withdrawn in 2Q2009 was RM1,807.01 million (Q1 2009: RM1,621.15) compared with RM1,361.00 million in 2Q2008.

Withdrawal of Savings of More Than RM1 Million, another product introduced under the “Beyond Savings” initiative, also registered an increase during the quarter under review. The number of approved applications increased 64.56% to 339 from 206 applications in 2Q2008.

With regard to EPF Service Channels, transactions made using the Smart Kiosks in 2Q2009 showed an increase of 11% compared with 2Q2008, while counter service transactions dropped 4.59%. “This result suggests that the popularity of electronic channels has continued to gain momentum. To facilitate members, we have increased the number of EPF Smart Kiosks to 141, 62 kiosks of which are located at premises other than EPF offices,” said Tan Sri Azlan Zainol, EPF’s CEO.

The EPF has maintained its service levels as indicated in its customer service charter. In 2Q2009, 91.31% of Age 50 and Age 55 Withdrawals were processed within three days while 99.26% of Housing Withdrawals were processed within 21 days.