In a bid to fortify the financial futures of its members and adapt to their evolving life stages, the Employees Provident Fund (EPF) has introduced a sweeping restructuring of its account system. Set to roll out on May 11, 2024, this transformation will see the current two-account setup replaced by three distinct accounts: Akaun Persaraan, Akaun Sejahtera, and Akaun Fleksibel.
CEO Ahmad Zulqarnain Onn emphasized that the core objective of this initiative is to empower members in navigating their retirement planning across short-, medium-, and long-term financial horizons. "The EPF Account Restructuring initiative aims to equip members with the tools to balance their retirement needs effectively, ensuring a robust financial cushion post-retirement," stated Ahmad.
Starting May 11, 2024, EPF members below the age of 55 will witness their accounts seamlessly transition into the new framework. Balances from the current Account 1 and Account 2 will find new homes in Akaun Persaraan and Akaun Sejahtera, respectively. Akaun Fleksibel will begin its journey with a clean slate, awaiting fresh contributions.
Under the revamped allocation strategy, subsequent contributions post-May 11, 2024, will be distributed as follows: 75% into Akaun Persaraan, 15% into Akaun Sejahtera, and 10% into Akaun Fleksibel. Additionally, between May 11, 2024, and Aug 31, 2024, members will have a one-time opportunity to transfer a portion of their savings from Akaun Sejahtera to Akaun Fleksibel, providing an initial boost to their flexible account balance.
Ahmad stressed that this restructuring isn't merely reactive but a proactive measure to align with shifting employment landscapes, demographic trends, and members' life cycle demands. "This initiative isn't a knee-jerk reaction but a forward-looking approach to support members amidst evolving job markets, demographic shifts, and individual life stages," affirmed Ahmad.
With these enhancements, the EPF aims to empower every member to navigate their financial journey with resilience and confidence in an ever-changing landscape. Moreover, accessing funds from Akaun Fleksibel will be hassle-free, with online withdrawal options available through KWSP i-Akaun or at any EPF branch nationwide, subject to a minimum withdrawal threshold of RM50.
Upon hitting the age of 55, members' savings from Akaun Persaraan, Akaun Sejahtera, and Akaun Fleksibel will be amalgamated into Akaun 55. Subsequent contributions will be directed to Akaun Emas, streamlining retirement planning for EPF members.
The new system will be fully accessible to members on May 12, 2024, ushering in a new era of personalized financial management tailored to the diverse life stages and needs of EPF members.
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