THERE is a danger that contributors who can access money from the Employees’ Provident Fund for an increasing number of reasons may not have sufficient funds for their retirement.

EPF-sourced funds to finance the purchase of home or education are a good investment and will contribute to building a long-term wealth base.

However, being able to withdraw funds to cover emergencies as medical costs are short-term expenses that should be covered from the wage earner’s budget.

The government should look at the role of the EPF in the context of other national policies such as healthcare and education.

A national healthcare scheme to cover hospitalisation and post-operative medication, and a loan scheme to fund higher education are two initiatives that could be funded through the taxpayer’s salary.

Poverty in old age is a personal and national tragedy. Every effort must be made to keep retirement funds intact to avoid hardship.

IAN MACKECHNIE, Kuala Lumpur

Source: NST – January 22, 2008