Answering All Your Burning Questions About EPF's Account 3

No, you cannot opt out.

Cover image via Azneal Ishak/Malaysiakini

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The Employees Provident Fund's (EPF) announcement last month about the restructuring of its members' existing two accounts into three accounts has prompted a flurry of questions from the public

One of the most common questions on social media is whether EPF members can opt out of this restructuring, mainly because many are reluctant to have their monthly contributions divided into three parts.

As announced by EPF, 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

Starting 11 May, while existing balances will remain in Akaun Persaraan and Sejahtera, new contributions will be split, with 75% going to Persaraan, 15% to Sejahtera, and 10% to Fleksibel.

EPF members can transfer a portion of their Account 2 balance to new Account 3 (Fleksibel) between 11 May and 31 August. It's a one-time option; if not exercised, the funds will remain in Account 2 (Sejahtera).

Essentially, Account 3 (Fleksibel) will begin with a zero balance.

Can members choose not to have any money in Account 3 (Fleksibel)?

Actually, no! While this account starts with a zero balance, 10% of members' new EPF contributions will go into Account 3 (Fleksibel) after 11 May, regardless of whether a member chooses to do so or not.

The allocation of new contributions after Akaun Fleksibel is introduced.

Image via KWSP

While the restructuring applies to all EPF members, will members have the option to opt out of Account 3 (Fleksibel) if they wish to do so?

"No, members do not have the option to opt out of Akaun Fleksibel," a spokesperson of the fund's strategic communications department told SAYS in an email on 26 April.

According to the official announcement, the restructuring applies to all EPF members, including non-Malaysians who have not reached the age of 55 by 11 May 2024.

However, the spokesperson clarified that the restructuring does not apply to all members as it only affects EPF members under the age of 55.

Can members choose to direct contributions exclusively to Account 1 (Persaraan) and Account 2 (Sejahtera)?

"No," the spokesperson told SAYS.

Will the dividend for Account 3 (Fleksibel) be the same as that for Account 1 (Persaraan) and Account 2 ( Sejahtera), or is there a difference?

The dividend for Account 3 will be the same as for Account 1 and Account 2.

According to the spokesperson, for now, there will be no change to the policy on setting the dividend rate after the implementation of the EPF Account Restructuring.

However, this could change in the future.

Can members transfer funds from Account 3 (Fleksibel) to Account 1 (Persaraan) or Account 2 ( Sejahtera)?


According to EPF, members can transfer a portion of their savings as follows:
- From Account 3 (Fleksibel) to Account 2 (Sejahtera)
- From Account 3 (Fleksibel) to Account 1 (Persaraan)
- From Account 2 (Sejahtera) to Account 1 (Persaraan)

PS: Once the money is transferred, it cannot be deposited back into the original account.

However, do note that members cannot transfer money from Account 1 (Persaraan) to Account 2 (Sejahtera) or Account 3 (Fleksibel) because Account 1 (Persaraan) is primarily intended for retirement.

Are there conditions to withdraw funds from Account 3 (Fleksibel)?


While EPF encourages members to withdraw from this new account in case of emergencies, members can make withdrawals from Account 3 (Fleksibel) at any time. The lowest withdrawal amount allowed is RM50.

Can members voluntarily add more money to Account 3 (Fleksibel)?

Simple answer, no.

The EPF spokesperson told SAYS in an email that while members may choose to voluntarily contribute up to RM100,000 per year, contributions into only Account 3 (Fleksibel) are not allowed.

What this means is that members cannot place all their monthly contributions into only one of the three accounts and contributions must be split according to the new ratio announced by EPF.

Starting 11 May, any contributions will be split as such:
75% going to Account 1
15% to Account 2, and
10% to Account 3 (Fleksibel)

Read our detailed explainer on this here.

Read how to transfer savings to Account 3:

Read more about the restructuring here:

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