The Employees Provident Fund's (EPF) proposal to increase the current withdrawal age from 55 to 60 years, frankly, came too late.

The proposal, although met fierce opposition from various quarters, including the contributors themselves, has brought many to think about the rather sad financial state of our senior citizens and future retirees.

For many of us, EPF is the only source of savings for retirement. True, the money is hard-earned and should rightfully be returned to the contributors after decades of contributing to the fund.

But, it has been highlighted many times that we are not saving enough for our retirement. And the cases of cruel children who abandon their parents after finishing their retirement money are common.

It is quite scary how fast the money, saved and accumulated over the years, can be finished within months or even weeks. Is it because Malaysians are a gullible lot when it comes to money matters, or, are we just too sympathetic towards our children – where retirees have been known to have spent all their money on their children’s marriages and debt? Some have also lost their entire savings to scams and fraudsters.

The government increased the retirement age from 55 to 60 but full EPF withdrawal remained at 55.

According to the last World Health Organization (WHO) report, Malaysia's life expectancy for men is 71.7 years while women is 76.4.

With Malaysians living longer, and an extended retirement age, it is only fair that an improved retirement plan is adopted.

After being in charge and investing the contributors’ money for decades, it is only fair that EPF plays a better role in the contributors’ retirement years.

There were also suggestions that the contributors be allowed to withdraw in stages. This could be a positive manner to address the anxiety among the senior citizens.

Let’s look at Singapore’s Central Provident Fund (CPF). The fund allows its contributors to withdraw up to 50 percent of their money when the contributor turns 55. The balance is placed in retirement plans where the retiree will be getting a monthly payout.

For Malaysians working in Singapore, they can opt to surrender their PR status and withdraw their monies after they turn 65.

Such a system or retirement plan must be adopted by EPF instead of a lump sum amount given to a retiree.

Logically, there is no reason why anyone would object to their money being invested longer in EPF, which promises almost 35 percent more if it is withdrawn at 60.

In fact, if this proposal was made in 2013, along with the government’s announcement to increase the retirement age, I am positive the opposition to the proposal would not be this great.

The fact is, the people are worried about their money. Talks that the EPF money will be used up by the government has been making its rounds since before the 13th general election. Though EPF had explained, the anxiety did not die down. The fear is still there.

Getting the people’s trust is most crucial for EPF, at this juncture before it takes the next step.

According to the EPF annual report last year, nearly 70 percent of the contributors had less than RM50,000 in their accounts when they retired.

EPF, calculated that the money can only last them for five years, if the retiree spends about RM800 per month after their retirement.

How will extending the age for full withdrawal be able to address the concerns above? It will only be some kind of a temporary solution.

Let’s scrap this practice of full withdrawal and come up with better retirement plans. Let’s pick one or two tips from our neighbor.

READ: EPF offers four choices, seeks feedback from contributors