Last updated on December 25, 2025
KUALA LUMPUR, 2 August 2025 – The Employees Provident Fund (EPF) of Malaysia has proposed a two-tier restructuring of members’ retirement savings aimed at providing a more stable and sustainable income stream after retirement, according to Deputy Finance Minister Lim Hui Ying.
Under the proposed new scheme, future EPF contributions would be divided into two distinct accounts:
- Flexible Savings Account: Allowing members unrestricted access for withdrawals at any time.
- Income Savings Account: Providing regular payouts post-retirement until the savings are fully utilized.
“This is a key step towards ensuring members have a structured and reliable income during retirement,” Lim stated in a Facebook post.
Lim stressed that the proposed changes would not impact current EPF members’ existing withdrawal rights. The new two-tier structure would apply only to new members after the official implementation date, with current members having the option to voluntarily opt in.
“The Madani government will continue to listen to the people and conduct thorough engagement sessions before any implementation. The aim is clear — to help Malaysians manage their retirement savings in a more structured, fair and sustainable way,” Lim added.
The proposal remains in the early stages, with the government committed to gathering extensive public feedback before proceeding. This initiative forms part of broader governmental efforts aimed at enhancing long-term financial security for retirees, particularly addressing premature withdrawals and the adequacy of savings for later life.
