EPF May Soon Launch 'Account 3' To Allow Immediate & Flexible Withdrawals

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According to EPF chief strategy officer Nurhisham Hussein, they are looking to introduce a new account dubbed 'Account 3' which will allow contributors, especially those in the informal sectors, to make withdrawals at any time, reported The Edge.

Nurhisham, who was speaking during the EPF special media briefing virtually yesterday, 11 July, said that the proposed account is expected to be implemented for new contributors within two years.

He added that it aims to attract informal workers to make contributions to the EPF.

"So basically, [it will cater to] business owners, as well as potentially those working in creative industries [and] professionals," he said, adding, "I think we are trying to accommodate the needs of the informal workers. But for [existing members who] don't think they have enough emergency funds, they can transfer [their savings] into Account 3 [from Accounts 1 and 2]."

However, existing members can also voluntarily opt in once the account is created.

"It is purely optional for existing members," Nurhisham said, adding that those who sign up will be able to transfer their savings from Accounts 1 and 2 to Account 3 and be able to make unconditional withdrawals.

For context, Accounts 1 and 2 are the pension fund's existing retirement saving accounts for members. While Account 1 comprises 70% of members' savings, Account 2 comprises the other 30% for discretionary withdrawals.

Additionally, Account 3 will act as an emergency fund, it will probably offer a lower dividend compared to the other two accounts, according to the EPF chief strategy officer.