The Employees Provident Fund (EPF) has unveiled a significant restructuring of members’ accounts to enhance retirement income security while addressing current life cycle needs.
‘This restructuring allows EPF members to readily access some of their savings through the new Flexible Account, while continuing to build their retirement savings in the Retirement Account,’ explained EPF CEO Tuan Syed Hamadah.
Effective 11 May 2024, the EPF will restructure the accounts of all members under the age of 55 from the current two accounts (Account 1 and Account 2) into three new accounts:
Source: EPF
From 11 May 2024 onwards, all new contributions will be automatically allocated across these three accounts: 75% credited to Akaun Persaraan (previously Account 1), 15% to Akaun Sejahtera (previously Account 2), and 10% to Akaun Fleksibel.
An example of the distribution of contributions. Source: EPF
The newly introduced Akaun Fleksibel is designed to help members access savings for short-term financial needs. Members can withdraw any amount from this account at any time, subject to a minimum withdrawal of just RM50.
Frequently Asked Questions
Will Akaun Fleksibel start with a zero balance?
No. To kickstart the Akaun Fleksibel, members will have a one-time option during the opt-in period from 12 May 2024 to 31 August 2024 to transfer a portion of their existing Akaun Sejahtera (previously Account 2) balance into the new Flexible Account. Depending on their Akaun Sejahtera balance, between 10-100% of those funds can be transferred.
Illustration of initial amount distribution. Source: EPF
Is there an option for members to not opt for the initial transfer amount?
Yes, if you choose not to transfer an initial amount to Akaun Fleksibel, your existing balance will remain in Akaun Persaraan (previously Account 1) and Akaun Sejahtera (previously Account 2). However, starting 11 May 2024, new contributions will be credited to all