00:00Two financial planners have raised concerns over a proposal allowing employees' Provident Fund members to use a portion of their retirement savings for medical insurance, warning that the move could undermine long-term financial security.
00:15Rajendran Vyrovan said even essential withdrawals from Account 2, such as for medical insurance, could result in a lower quality of life post-retirement and lead to greater dependence on family members or public assistance.
00:28He added that the proposed 1% cap on withdrawals, while small, may encourage frequent withdrawals from minor expenses, which would gradually erode retirement savings.
00:38He urged EPF members to explore other options like employer-sponsored health coverage or using personal emergency savings before tapping into their retirement savings.
00:47Health Minister Zulkifli Ahmad recently proposed that EPF allow Account 2 funds to be used to pay for medical insurance premiums, allowing contributors access to higher quality health care offered by the private sector in Malaysia.
01:01Another financial planner, Nurul Azila Kamaruzaman, also cautioned against allowing withdrawals for non-retirement purposes, saying they would dilute the very essence of EPF savings.
01:13She suggested that members with healthy EPF balances be allowed to utilize a small portion for a basic policy, provided that they commit to rebuilding their savings through voluntary EPF contributions or other investments.
