KUALA LUMPUR, Aug 30- More members have opted for Flexible Age 55 Withdrawal to better manage their retirement savings, says the Employees Provident Fund (EPF).
In a statement Thursday, it said 47,897 applications were approved during the second quarter (Q2) ended June 30, 2013 compared with 37,602 in Q2 2012 (Q1 2013: 43,775), reflecting a rise of 27.38 per cent, underscoring a trending rise among members to stretch their savings for the long haul.
The total amount withdrawn under Flexible Age 55 Withdrawal increased from RM1.51 billion in Q2 2012 to RM1.77 billion in Q2 2013, up 17.32 per cent (Q1 2013: RM1.66 billion), it said.
Chief Executive Officer, Datuk Shahril Ridza Ridzuan, said EPF welcomed this good news which showed that more members were aware of the importance of financial planning for their retirement.
“Flexible Age 55 Withdrawal offers them the ability to manage their savings to be dispensed over a longer period and to grow with a compounding effect from the annual dividend earned.
“A sustainable retirement requires sound financial management, so that members would have adequate savings to fulfil their basic financial needs during their golden years,” he said.
EPF said during the quarter under review, Lump Sum Age 55 Withdrawal saw 48,927 applications approved compared with 44,391 in Q2 2012 (Q1 2013: 45,756), registering an increase of 10.22 per cent.
The amount withdrawn during the quarter amounted to RM2.04 billion (Q1 2013: RM2.02 billion), grew 9.62 per cent from RM1.86 billion in Q2 2012, it said.
It said in Q2 2013, the use of the EPF kiosk saw a rise in use to 2.36 million, compared with 1.94 million in Q2 2012, reflecting a growth of 21.30 per cent.
“This showed that more members preferred to check their account statements at the EPF kiosk, a facility which offers members a faster way to obtain their account statements.
“There are 145 kiosks located at EPF branches nationwide, three at Urban Transformation Centres as well as another 1,108 at selected banks and other high-traffic outlets,” it said.
The increase in the use of the kiosks was in tandem with the drop in over-the-counter transactions from 1.43 million in Q2 2012 to 1.37 million in Q2 2013, a decline of 4.29 per cent, it said.
Shahril said EPF was constantly looking into electronic solutions that would enhance its service delivery and to enable both members and employers to benefit from more convenient and speedier services.
“The EPF is now encouraging employers to make full use of the e-Caruman facility to save time and money on their monthly contribution details submissions.
“This will also reduce the number of errors and ensure that both employers and employees can be assured of the accuracy of information submitted. The use of e-Caruman is mandatory for all new employers registering with the EPF,” he said.
As at June 30, 2013, the number of nominations recorded was 3.53 million, up 5.16 per cent compared with the corresponding period in 2012, he said.
“We strongly encourage our members who have yet to make their nominations to do so immediately.
“Nominating beneficiary(s) will ensure that their loved ones are financially protected and without needed to go through unnecessary hassle when the member passed on,” he said.
As at Q2 2013, the EPF membership stood at 13.77 million, up 3.10 per cent compared with 13.35 million recorded in the same period last year.
Active members contributing to the EPF stood at 6.43 million as at Q2 2013.
The number of employers registered also had increased from 496,939 in Q2 2012 to 512,078 in Q2 2013, up 3.05 per cent.
Shahril said the EPF would continue to focus on ensuring that its members could achieve a sustainable retirement.
“The recent announcement on the new Basic Savings reflects the need for our members to achieve a retirement fund that can sustain a minimum lifestyle upon reaching the age of 55.
“Together with the implementation of the full contribution rates to age 60 starting with the August wages, we hope that it will be easier for our members to achieve a sustainable retirement,” he said.
– BERNAMA
