EPF Officially Announces Details Of Account 3 And How It Will Work For Members
Here's everything you need to know about the new 'Akaun Fleksible' account.
The Employees Provident Fund (EPF) has announced that it will restructure its members' existing two accounts into three, starting from 11 May
In a statement today, 25 April, the EPF said the restructuring of its members' accounts aims to boost their income security after retirement while addressing their current life cycle needs.
The three accounts are:
- Akaun Persaraan: Replaces Account 1, holds savings for retirement
- Akaun Sejahtera: Replaces Account 2, focuses on life cycle needs
- Akaun Fleksibel: Allows withdrawals for short-term needs.
Savings in this new account can be withdrawn at any time according to members' needs.
Here's how it works:
Starting 11 May, existing balances will remain in their respective new accounts, Persaraan and Sejahtera. New contributions will be split with 75% going to Persaraan, 15% to Sejahtera, and 10% to Fleksibel.
Akaun Fleksibel will begin with a zero balance.
Between 11 May and 31 August 2024, members will have a one-time option to transfer part of their savings from Sejahtera to Fleksibel as an initial balance.
However, if the member does not choose to opt-in for an initial transfer, no funds will be moved, and the existing balance will remain in Akaun Sejahtera, EPF said in the statement.
The transfer amount depends on the members' Sejahtera balance.
- Below RM1,000: All goes to Fleksibel
- Between RM1,000 to RM2,999: RM1,000 goes to Fleksibel, rest stays in Sejahtera.
- Between RM3,000 and above: A specific portion is transferred to each account (Persaraan, Sejahtera and Fleksibel)
When members reach the age of 55, all savings in the three accounts will be merged into Akaun 55. Any new contributions made after age 55 will be credited to Akaun Emas.
Akaun Fleksibel withdrawals
Members can withdraw money from Akaun Fleksibel at any time for any reason.
The minimum withdrawal amount is RM50. To withdraw from Akaun Fleksibel, members must apply online via KWSP i-Akaun or at any EPF branch nationwide.
EPF said that this restructuring aims to give members more control over their retirement savings while providing access to funds for short-term needs
"The main focus of the EPF Account Restructuring initiative is to empower members in making decisions to balance future needs for retirement between short-, medium- and long-term financial needs.
"This initiative will also help increase members' retirement savings so that they will have sufficient retirement income to sustain their needs after retirement," said EPF chief executive officer Ahmad Zulqarnain Onn.
Members can fully access the system starting 12 May
More information is available at EPF branches, its website, and the KWSP i-Akaun app.
Meanwhile, read our explainer on the new account:
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