The Employees Provident Fund (EPF) has officially announced that it will be restructuring the accounts of its members who are aged 55 and below, effective 11 May 2024. Aimed at enhancing their income security after retirement while addressing their current financial needs, this exercise will also see the introduction of the new Akaun Fleksibel.
With this, the EPF confirmed that members accounts will be restructured from the existing two accounts (Akaun 1 and Akaun 2) to a total of three accounts, with the following details:
The EPF further noted that between 11 May to 31 August 2024, members will be given one opportunity to opt-in and transfer part of the savings balance in their Akaun Sejahtera to Akaun Fleksibel as an initial amount. Note, though, that this doesn’t mean you’re allowed to determine and transfer any amount that you like.
Instead, the EPF has determined the allocation and ratio of transfer that is allowed (should you decide to opt in), depending on the existing balance in your Akaun Sejahtera:
“The difference in this distribution method is to enable members with low savings balance to also have a meaningful initial amount in their Akaun Fleksibel,” said the EPF in its statement, adding that members can also choose not to opt in for these transfers, in which case their Akaun Sejahtera balance will remain untouched and unmoved.
Note, too, that you will not be able to cancel your opt-in request once you have submitted it. You can submit your application through the KWSP i-Akaun mobile app or the self-service terminals at any EPF branches nationwide between 11 May to 31 August 2024.
As for the new Akaun Fleksibel, members will be allowed to make withdrawals from the account at any time for any purpose, subject to a minimum withdrawal amount of RM50. You can put in your request online via i-Akaun or at any EPF branches nationwide.
Finally, the EPF also highlighted that as per the current practice, all savings in Akaun Persaraan, Akaun Sejahtera, and Akaun Fleksibel will still be merged into Akaun 55 once you reach the age of 55 years old. Subsequent contributions that you receive from age 55 onwards will then be credited into Akaun Emas (which will be locked and can only be withdrawn once you hit 60 years old).
“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,” said the chief executive officer of EPF, Ahmad Zulqarnain Onn.
Ahmad Zulqarnain also said that this initiative is a proactive step to help members face 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,” he commented.
(Source: EPF)
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