# How Malaysia's EPF could shift to automatic annuity with opt-out > Malaysia's EPF might adopt Singapore's CPF LIFE-style annuity with opt-out for retirement savings. - Title: How Malaysia's EPF could shift to automatic annuity with… - Summary: Malaysia's EPF might adopt Singapore's CPF LIFE-style annuity with opt-out for retirement savings. Malaysia could implement an automatic EPF annuity with… - Keywords: epf, malaysia, annuity, opt-out, retirement, cpf life, epf withdrawal, malaysian retirement, news, world, Malaysia's, shift - Source: Malay Mail — https://malaymail.com/news/malaysia/2026/10/22/instead-of-a-lump-sum-epf-withdrawal-how-an-automatic-annuity-with-opt-out-option-could-work-for-malaysians/239853 - Author: Ida Lim - Published: 2026-10-22T07:00:00+00:00 - Read time: 1 min - Topics: epf, malaysia, annuity, opt-out, retirement, cpf life, epf withdrawal, malaysian retirement, news, world ## EPF annuity proposal Financial planner Rajen Devadason suggested Malaysia adopt an insurance annuity scheme similar to Singapore's CPF LIFE with an opt-out option. > At the International Social Wellbeing Conference 2026, financial planner Rajen Devadason suggested that Malaysia could benefit from an insurance annuity scheme similar to Singapore's CPF LIFE, provided it includes an opt-out option and allows current EPF withdrawal parameters ## Automatic enrolment model The scheme would use automatic enrolment with a chance for people to opt out, making it politically palatable. > He was speaking to Malay Mail at the sidelines of the recent Employees Provident Fund’s (EPF) International Social Wellbeing Conference 2026 (ISWC 2026) ## Retirement age considerations Rajen noted that increasing retirement age to 65 without changing EPF withdrawal rules at 50, 55, and 60 would avoid political backlash. > But if you then give people the opportunity to work longer, that funding between 60 and 65, if all of that flowed into an annuity, that might work, might help ## Private pension responsibility Rajen stressed that individuals must build private pensions alongside the annuity to ensure sufficient retirement income. > The whole purpose of working longer is that you can build a higher pile of retirement savings ## ILO specialist perspective ILO senior social protection specialist Mariko Ouchi emphasized no universal retirement model exists, requiring country-specific solutions. > Many people ask me what is the best model or good practice in terms of pension and old-age benefit in the world. And then I answer, all countries are having problems in one way or another ## Country-specific adaptations Ouchi noted Malaysia must adapt its pension system to changing demographics, work patterns, and life expectancies. > Countries also need to carry out a mid-term to long-term revisiting of their existing pension models, to see if it could continue running for decades unchanged or if substantial reforms are needed ## Periodic reviews needed Ouchi recommended regular actuarial evaluations of pension systems every three to five years to adapt to demographic shifts. > Countries go through many changes, such as the different work nature including international jobs done remotely; migration; demography; higher life expectancies; higher retirement ages; and higher pension access ages ## Retirement savings strategy The proposal combines extended working years with private pension building to create multiple passive income streams for retirement. > These funds should be used as capital to create multiple streams of passive income for retirement ## What happens next Malaysia may implement an EPF annuity with opt-out option while maintaining current withdrawal rules for retirement savings. > But by itself, it’s not enough. People must take personal responsibility. They have to build their own private pensions ## Key takeaway Malaysia could implement an automatic EPF annuity with opt-out option to improve retirement savings without changing current withdrawal rules.