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Withdraw EPF at 55 or 60. Why I decided on 60.

First of all, if you think it is your money, thus it should be by your side and not be kept by EPF, then by all means please withdraw it at 55. Log into the EPF site tonight or before 5th May and state your decision; withdraw at 55. Here’s the URL:  If you are nearing your retirement age and you struggle every month just to make ends meet, then it’s best that you withdraw at 55. If your family member needs YOUR EPF money and begs you to withdraw the money for them, I would suggest to think really carefully. It is your money so that you can use it for you until the day you bid goodbye. If you are a seasoned investor in BURSA and you would like to withdraw the money because you are confident that your investment will yield higher returns, you MUST withdraw asap.
However, if you think you want to withdraw because you want to put it into unit trust, please think carefully. Are you looking at aggressive funds with lots of equity or are you looking at bond funds? If it is aggressive fund, I wish you the best because you may want to enter at the right time. If you did not, it would take some time for your unit trust to give you a decent return. If you are thinking bond fund, well, take a look at the chart. EPF dividends from 1996 till last year has been pretty okay and would definitely be comparable if not better than any bond fund. Oh yeah, return for 2015 may be good too because EPF had just earned a huge profit by selling one property in London. savings
If you think you want to withdraw because of 1MDB which will bankrupt EPF, please note that you have better be retiring soon because if 1MDB is going to cause EPF to go bankrupt, it will not be waiting for another 10 or 20 years or even 30 years to do so. It should be soon. Of course, please do not withdraw to put into Fixed Deposit. It has only beaten EPF in 1997 and I seriously do not believe FD can beat EPF because your FD is one of the cheapest cost of funds for the banks when they lend money BACK to you. If your FD is high, then your loans would also be much higher too. I am not sure if that’s what we may want.
Okay, enough about withdrawing at 55. Why withdraw at 60? If we have been contributing to EPF from the time we started working till 55, the amount of money we have inside EPF when we are 55 is at its highest level. In other words, if we not touch the money, the returns from the years of 56 to 60 would be the highest ever in our EPF saving’s history. That’s one major reason why if I am not really struggling and I have enough for my monthly expenses, I would prefer to allow my biggest savings (EPF) to earn the biggest return, in amount. That is why for the past many years, investment continue to be high on my priority list and I would like to treat EPF as what it should really be, my retirement funds. Perhaps I may stop work at 56 and may live another 25 years. 🙂   I think withdrawing only at 60 is okay for me. Yes, only for me. Maybe the best would be up to the members to decide and both options are available? Yeah, perhaps.
written on 22 Apr 2015
next suggested article: Can you retire with just RM900,000?
DO not impose restrictions on me as to when I can withdraw my Employees Provident Fund (EPF) money. The government’s intention to amend the EPF Act and increase the withdrawal age from 55 years to 60 years is uncalled for. Instead, the government should come up with an option either to allow me to withdraw at the age of 50 or 55, or at 60. The government needs to understand that I am working in the private sector and EPF is the only source of savings I have upon my retirement. Unlike government servants, I do not get a monthly pension. Instead, it would be good if the government continued with the control mechanism to deter people from withdrawing at an early stage, resulting in zero savings when they reach the age of 55 or 60. Furthermore, it is for me to decide whether my health permits me to continue working beyond 55. Even though the retirement age has been increased to 60, an employee may no longer be a permanent employee after that. Most private sector employers tend to give annual renewal contracts subject to their needs and requirements. Even the EPF contribution rate varies when we reach 56 and above. Instead of increasing the age for withdrawal, it is best that the government and the EPF board come up with a blueprint, and advise me on what is their investment plan and how it is going to benefit me in the future. The government should also advise me on other means of growing my EPF money besides encouraging me to invest in trust funds. Apart from EPF contributions and personal savings, are there any savings that the government can come up with before one attains retirement age? The government also needs to explore ways not to tax an individual for his earnings after 56 and above. The only source of income I have is through working in the private sector. Do not further tax middle income earners like me by not allowing me to withdraw my EPF money at the age of 55. Please bear in mind that the average income earned by me is less than the income earned by any of the members of parliament. These people are elected by individuals like myself to serve the public and to govern this nation. But they tend to forget their salaries are paid by the public by way of numerous tax contributions, etc. Hence, please serve in the best interests of Malaysians and for this nation. Lastly, please stop harassing contributors like myself from enjoying my hard-earned EPF money in my old age.
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Charles Tan The Founder The Writer Kopiandproperty
Charles Tan

Charles is Founder of He writes from his investment experience for the the past 20 years in investments including property, stock, unit trust and more as well as readings and conversations with many property gurus in the industry. is an independent property blog which is not affiliated to any media company, property developer or even real estate agencies.

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