YOURSAY | Account 1 EPF withdrawal will later affect those in old age

 

YOURSAY | ‘Something must be sacrificed by EPF to allow the early withdrawals.’

Umno figures cry foul over EPF withdrawal conditions

I-sinar conditions too strict, unfair - economic expert

Malaysia Bharu: This whole idea of withdrawing from Account 1 is a bad idea.

The Employees Provident Fund (EPF) is the sole mandatory retirement saving for those in the private sector, especially those in the medium and lower ranks with limited funds.

We often see the plight of retirees who have unwisely used up their retirement fund on frivolous needs.

EPF funds are best left with the EPF even after retirement as they pay good dividends and they have many schemes to release these funds periodically in the best interest of the retiree's upkeep in old age.

While the current needs of those whose income is affected by the pandemic is urgent and understandable, withdrawing from Account 1 is not the solution. It is a double-edged sword.

Eventually, the burden falls on the establishment's welfare arm to care for those without funds to sustain in old age.

The government should introduce something in the form of the PTPTN (National Higher Education Fund) scheme that provides loans at minimum cost, repayable when the borrower's economic situation improves.

It is the responsibility of the establishment to provide the safety net for national emergencies such as Covid-19.

Anonymous 79: Perikatan Nasional (PN) should not push EPF to execute this plan. Instead, PN should propose set up a fund like PTPTN.

Anyone who needs help can borrow from this fund. Set a very low interest. This is more helpful.

If EPF members finish all the money in their EPF accounts, who is going to help them when they retire?

Don’t forget that EPF is for their retirement and we should not ignore the warning from EPF that most EPF members don't have enough savings for their retirement.

We are not lucky like civil servants, who have pension for life.

Harimau_Arif: All the debate about how to utilise EPF to help rakyat who are having trouble to make ends meet is truly missing the point.

EPF is meant for retirement and if one needs to tap into this fund now, most likely, that person will not be able to recover the fund withdrawn for later use.

Tapping into the EPF for these individuals are in fact a double whammy.

The PN government is having a bloated budget to fatten their own pockets and has no intention of helping the rakyat in need.

Malaysian1: Obviously EPF does not have money lying around in condos and suitcases. It is an asset and fund management company, not a bank. For it to fork out cash will be a challenge.

EPF is right in imposing conditions. Those not affected such as government servants should not be allowed to dip into EPF funds. Conditions imposed are fair and palatable.

ScarletPanda9731: Why set conditions for the withdrawal of the contributors' own money? It is up to the individuals themselves.

If they spend lavishly, that is their business and not of the government's. They should not cry later. The depositors must take responsibility for their own actions.

Right and Wrong: If that is the case, then allow anyone to withdraw whatever they want. That may make some politicians happy for some time.

It is very clear that some politicians are not worried about the future of the people.

If the government cannot even help these people with some money now, how are they going to help these poor people when they are too old to work and face a similar situation as now.

Will the politicians then withdraw their own EPF savings and help those who may be suffering?

BlueLynx2013: The country is paying off billions in debts caused by former prime minister Najib Abdul Razak and family's lavish lifestyle.

And now Najib is talking about the welfare of the rakyat. Something is terribly wrong here.

Economists: Why let 8m tap EPF when govt can afford cash assistance?

YellowKancil0051: Why let eight million contributors tap into their EPF savings when the government can afford cash assistance?

The answer is, many people this country do not understand how to prepare financially for retirement and think the government allowing them to dip into their savings now is a good thing.

Plus, it costs the government nothing in the short term to do this.

This nonsense from the finance minister about not affecting dividends is clearly fiction. No fund worth their salt will keep RM70 billion in cash lying around. Some investments must be liquidated before the objectives are met.

There is no free lunch. Something must be sacrificed by EPF to allow the early withdrawals.

BusinessFirst: In answer to the question, it is because the money is to be spent on themselves by the politicians. There are luxury bags, cars, weddings, holidays, houses, mistresses (or toyboys) to support, etc.

They also need to have cash to prepare for another election. Some folks expect RM100 plus food and goodie bags. It adds up. - Mkini