KUALA LUMPUR, Nov 25 (Bernama) -- Some RM1.97 billion has been withdrawn under the Employees Provident Fund (EPF) Retirement Withdrawals in the third quarter of 2009 (Q3 2009), an increase from the RM1.64 billion withdrawn in the corresponding period last year.
Of the RM1.97 billion, RM1.41 billion was withdrawn as Lump Sum Age 55 Withdrawal, up 14.2 percent from that in Q3 2008, EPF said in a statement on its unaudited results today.
EPF Chief Executive Officer Tan Sri Azlan Zainol said the remaining RM557.05 million was withdrawn under the Flexible Age 55 Withdrawal, up 38.05 percent from the RM403.51 million last year.
"Increasing member interest in Flexible Age 55 Withdrawals underscores their confidence in the EPF in earning dividends for their savings. The flexibility of the withdrawal provides members the benefit of managing their nest egg more effectively.
"Nonetheless, 72 percent of retirement withdrawals still consist of lump sum withdrawals. We hope to see this amount decrease over time as more members become increasingly aware that lump sum withdrawal will likely lead to income inadequacy during retirement."
Azlan said members had exercised greater prudence and care in making withdrawals for housing as showed by a more cautious behaviour due to the present economic conditions.
"With many buyers adopting a 'wait and see' attitude, approved applications for housing withdrawals in Q3 2009 dropped 20.18 percent to 86,664 compared to the 108,573 applications last year," he added.
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