Publication: Pre-Retirement Withdrawal in EPF: An Exploratory Study of Employees in Malaysia
Loading...
Date
2014
Journal Title
Journal ISSN
Volume Title
Publisher
American-Eurasian Network for Scientific Information, Jordan
Abstract
Background: The increase in life expectancy along with the demographic pattern
moving towards ageing population especially among women has exposed women to
face higher risk of poverty in later life. Employees Provident Fund in Malaysia is a
defined contribution plan that provides benefits during retirement based on the amount
saved in the fund. However, the allowance of making pre-retirement withdrawals
during employment leads to problems in the adequacy of retirement income and this in
turn gives impact upon the quality of life in retirement. Objective: The objectives of
this study are to examine the impact of pre-retirement withdrawals on income during
employment and to identify either men or women would face higher risk of poverty
during old age. Results: The results has found that with pre-retirement withdrawals,
women are unlikely to maintain their standard of living under the present retirement
scheme due to low replacement rates and they face higher risk of poverty compared to
men. Conclusion: In conclusion, the implementation of pre-retirement withdrawal
exposed women to face higher risk of poverty in old age. Therefore, the policymaker
should review the implementation of this policy by giving options to employees in
Malaysia in order to balance a comfortable living during employment and after
retirement.
Description
Volume: 8 Issue: 3 March 2014 (Pages: 439-444)
Keywords
Women in Malaysia, Retirement Benefits, Pre-retirement withdrawals, Employees Provident Fund (EPF), Poverty
Citation
Mazlynda Md Yusuf, Mohamad Yazis Ali Basah, Yumn Suhaylah Yusoff., Pre-Retirement Withdrawal in EPF: An Exploratory Study of Employees in Malaysia. Aust. J. Basic & Appl. Sci., 8(3): 439-444, 2014