Examining withdrawal in Employee Provident Fund and its impact on savings
While the establishment of provident fund is mainly to ensure retirees to be financially secured in old age, pre-retirement withdrawals are commonly permitted for various purposes. These withdrawals had been identified as one of the main causes for low accumulated savings. Using a longitudinal admin...
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my.um.eprints.356782022-10-19T04:11:06Z http://eprints.um.edu.my/35678/ Examining withdrawal in Employee Provident Fund and its impact on savings Jaafar, Noor Ismawati Mohd Awang, Halimah Mansor, Norma Jani, Rohana Abd Rahman, Nur Hairani HG Finance Personal finance HM Sociology HN Social history and conditions. Social problems. Social reform While the establishment of provident fund is mainly to ensure retirees to be financially secured in old age, pre-retirement withdrawals are commonly permitted for various purposes. These withdrawals had been identified as one of the main causes for low accumulated savings. Using a longitudinal administrative dataset, the paper explored the withdrawal patterns among members of the Malaysian Employees Provident Fund and how much savings would be increased should there be no withdrawal allowed. Based on transaction records from 2002 until 2012, it was found that withdrawal varies by type of withdrawal and age. Preventing withdrawal would increase RM18, 384.10 in median savings. Data indicate that the amount of increment increases with age, however, more than 80 of the members would have an increase in savings of not more than RM50, 000. While the amount of increment in savings is found to be low, other forms of withdrawal should not be permitted if the EPF savings is to ensure financial security in retirement. © 2020, Springer Science+Business Media, LLC, part of Springer Nature. Springer 2021-03 Article PeerReviewed Jaafar, Noor Ismawati Mohd and Awang, Halimah and Mansor, Norma and Jani, Rohana and Abd Rahman, Nur Hairani (2021) Examining withdrawal in Employee Provident Fund and its impact on savings. Ageing International, 46 (1). pp. 70-82. ISSN 0163-5158, DOI https://doi.org/10.1007/s12126-020-09369-8 <https://doi.org/10.1007/s12126-020-09369-8>. https://www.scopus.com/inward/record.uri?eid=2-s2.0-85082832862&doi=10.1007%2fs12126-020-09369-8&partnerID=40&md5=05348e519bc4fb39b50322940e7bb265 10.1007/s12126-020-09369-8 |
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HG Finance Personal finance HM Sociology HN Social history and conditions. Social problems. Social reform Jaafar, Noor Ismawati Mohd Awang, Halimah Mansor, Norma Jani, Rohana Abd Rahman, Nur Hairani Examining withdrawal in Employee Provident Fund and its impact on savings |
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While the establishment of provident fund is mainly to ensure retirees to be financially secured in old age, pre-retirement withdrawals are commonly permitted for various purposes. These withdrawals had been identified as one of the main causes for low accumulated savings. Using a longitudinal administrative dataset, the paper explored the withdrawal patterns among members of the Malaysian Employees Provident Fund and how much savings would be increased should there be no withdrawal allowed. Based on transaction records from 2002 until 2012, it was found that withdrawal varies by type of withdrawal and age. Preventing withdrawal would increase RM18, 384.10 in median savings. Data indicate that the amount of increment increases with age, however, more than 80 of the members would have an increase in savings of not more than RM50, 000. While the amount of increment in savings is found to be low, other forms of withdrawal should not be permitted if the EPF savings is to ensure financial security in retirement. © 2020, Springer Science+Business Media, LLC, part of Springer Nature. |
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Article |
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Jaafar, Noor Ismawati Mohd Awang, Halimah Mansor, Norma Jani, Rohana Abd Rahman, Nur Hairani |
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Jaafar, Noor Ismawati Mohd Awang, Halimah Mansor, Norma Jani, Rohana Abd Rahman, Nur Hairani |
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Jaafar, Noor Ismawati Mohd |
title |
Examining withdrawal in Employee Provident Fund and its impact on savings |
title_short |
Examining withdrawal in Employee Provident Fund and its impact on savings |
title_full |
Examining withdrawal in Employee Provident Fund and its impact on savings |
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Examining withdrawal in Employee Provident Fund and its impact on savings |
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Examining withdrawal in Employee Provident Fund and its impact on savings |
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examining withdrawal in employee provident fund and its impact on savings |
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Springer |
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2021 |
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http://eprints.um.edu.my/35678/ https://www.scopus.com/inward/record.uri?eid=2-s2.0-85082832862&doi=10.1007%2fs12126-020-09369-8&partnerID=40&md5=05348e519bc4fb39b50322940e7bb265 |
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