The Employees Provident Fund (EPF) recently introduced EPF Account 3, catering to members under the age of 55, allowing flexible withdrawals for any purpose.
The New EPF Landscape: Introducing Account 3
With the long-awaited unveiling of EPF Account 3, members now have an additional avenue for managing their savings effectively. This latest offering provides greater flexibility in utilizing EPF funds to meet various financial needs.
Renaming For Clarity: Akaun Persaraan, Akaun Sejahtera, & Akaun Fleksibel
To streamline communication and enhance clarity, EPF has renamed the accounts.
- Account 1 is now referred to as Akaun Persaraan.
- Account 2 as Akaun Sejahtera.
- The newest addition, Account 3, is known as Akaun Fleksibel.
Allocation Breakdown: Where Your Contributions Go
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Commencing May 11, EPF contributions will be distributed across 3 distinct accounts, as opposed to the previous two. According to EPF guidelines, 10 percent of the monthly contribution will be allocated to Account 3, 15 percent to Account 2, and the majority, 75 percent, to Account 1.
Monthly Contribution:
- 75% to Account 1
- 15% to Account 2
- 10% to Account 3
Seizing The Opportunity: Transferring Funds To Account 3
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During the transitional period from May 11, 2024, to August 31, 2024, EPF members are presented with a one-time opportunity to transfer a portion of their savings from Account 2 to Account 3.
If opting in and holding more than RM3,000 in Account 2, 33 percent of the funds will be transferred to Account 3, while 17 percent will be directed to Account 1, with the remainder retained in Account 2.
For those with less than RM3,000 in Account 2, a maximum of RM1,000 can be transferred to Account 3, with no transfer occurring to Account 1.
How To Opt-In: Streamlined Application Process
EPF members interested in capitalizing on this opportunity can easily submit opt-in applications through the KWSP i-Akaun application or the Self-Service Terminals available at EPF branches nationwide.
With EPF Account 3, members gain unprecedented control over their retirement savings, empowering them to make informed decisions aligned with their financial goals.
