LETTERS: THE government has indicated that it won't object to periodic or monthly withdrawals by Employees Provident Fund members upon reaching 55.
The proposal is rational considering the high percentage of EPF members whose savings are low, but it must be implemented on an optional basis.
EPF data says that 51.5 per cent, or 6.67 million, of its members under 55 have savings below RM10,000 up to last year. Among them are two million members aged between 40 and 54.
The pandemic has caused thousands to lose their jobs, so these people relied on Covid-19-related withdrawals to survive.
Before my retirement in 2011, I had encountered setbacks in my career, but I didn't allow them to ruin my hope of achieving a happy retirement.
In 1997, I lost almost my entire non-EPF savings in the bourse when our country was struck by the Asian financial crisis.
Then, my earnings were impacted by the SARS outbreak in 2003 and the United States subprime crisis in 2008. Every executive in our hotel, including me, had to take repeated no-pay leave.
I had to tighten my belt further just so I could save a little bit more in case another crisis happened.
At that time my two children were going to pursue higher studies and I was the sole breadwinner. I prevailed because of my prudence and frugality.
People must learn to lead a prudent and healthy life post-pandemic.
Similarly, those who saved for a rainy day might not have to apply for the special withdrawal. In this way, their EPF savings will continue to grow.
Although the EPF has been declaring a reasonable rate of dividend even during challenging times, it can do better as it has more than a RM1 trillion worth of investment assets in its portfolio.
When the annual rate of return can match or exceed the performance of high-yielding stocks, EPF members will opt for periodic withdrawals upon reaching 55.
However, a healthy and frugal lifestyle should be instilled in children before they become adolescents.
In this spirit, don't make periodic withdrawals compulsory.
PATRICK TEH
Ipoh, Perak
The views expressed in this article are the author's own and do not necessarily reflect those of the New Straits Times