Employee Provident Fund (EPF) or simply known as Kumpulan Wang Simpanan Pekerja (KWSP) in Malaysia is a federal statutory body that provides reliable and effective financial savings support. It helps to save for your retirement days.
There a 2 accounts which secure the contributions. You are not allowed to withdraw from account 1 until you retire. The annual interest also helps you increase your funds here. However, when Covid-19 hit the world, this restriction was lifted and this special circumstance allowed withdrawals through different schemes. Many people went ahead to withdraw to cope with the pandemic but some chose not to. Some even made multiple withdrawals, according to when they needed the money.
Now, after COVID-19 and multiple lockdowns, it has been said that there will be a special account that allows withdrawals of funds from the EPF account. The question here is should we or should we not?
In my view, unless necessary, we should avoid withdrawing funds from our EPF accounts. Why? The most apparent reason would be savings for the future. So, we should identify whether we really need the money or it’s just a casual want or desire for something.
It is a safe investment which guarantees a decent amount of interest. Therefore, we don’t have to worry about our savings growing. Unknowingly, we would have a good amount of savings. Less stress on trying to save money.
Adding to that, we can also self-contribute to the account, This promotes savings from an early age. “You reap what you sow”. Your post-retirement will be easier to get through with the rising financial costs.
Also, for important reasons such as education, housing or medical expenses, withdrawal would be approved. This ensures that we use our savings wisely.
If any of you are thinking of withdrawing just for fun, remember that EPF is essential for your future life, so as much as you leave it untouched, better for you!
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