THE Employees Provident Fund (EPF) will restructure its members’ accounts, effective May 11, to include a third account called “Akaun Fleksibel” to allow contributors under the age of 55 to withdraw their savings for their short-term financial needs.

Savings in the third account can be withdrawn anytime.

Account 1 will be renamed “Akaun Persaraan”. It is meant to accumulate savings that will serve as income during retirement. Account 2 will become  “Akaun Sejahtera” to address life cycle needs that contribute to wellbeing during retirement.

“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,” EPF CEO Ahmad Zulqarnain Onn said in a statement.

The new third account will start with a zero balance. However, EPF contributors are given a one-time option between May 11 and August 31 to transfer part of the savings balance in their Akaun Sejahtera to Akaun Fleksibel.

Under this opt-in scheme, members with savings exceeding RM3,000 in Akaun Sejahtera can have a third of their savings transferred to the new flexible account.

For members with savings of RM1,000 and below in Akaun Sejahtera, the full amount can be transferred to Akaun Fleksibel. 

All contributions after May 11 will be allocated to the new accounts in the following manner: Akaun Persaraan (75%), Akaun Sejahtera (15%) and Akaun Fleksibel (10%).

“This initiative is not just EPF’s response to current needs, but is a proactive step to help members facing the changing job landscape and demographics of the population as well as the life cycle needs of EPF members.

“With these enhancements, the EPF strives to ensure that every EPF member can manage their finances with confidence and resilience in this dynamic and challenging environment,” said Zulqarnain.

Withdrawals from Akaun Fleksibel are subject to a minimum amount of RM50.

Applications for withdrawals from Akaun Fleksibel can be made online through KWSP i-Akaun or at any EPF branch.

The practice of merging the all savings of members who have reached age 55 into one account will continue. The account is called Akaun Emas, formerly known as Akaun 55. – April 25, 2024.