Article 2: Understanding EPF's Third Flexible Account
Understanding EPF’s
Third Flexible Account: What Members Need to Know
The EPF has recently implemented a significant restructuring, reorganizing its existing two accounts into three. The much-anticipated addition is the flexible account, designed to empower contributors with greater financial accessibility. Let’s delve into what EPF members should know about this new account:
In summary, the third flexible account provides EPF members with more financial flexibility, emergency access, and the ability to manage their retirement savings effectively. It’s a positive step toward empowering contributors in planning for their future.
Sources:
Third flexible account for EPF from May 11 | FMT
What is EPF Account 3 and How You Can Benefit - CompareHero
Explainer: All you need to know about EPF’s new ‘flexible’ Account 3 | Malay Mail
Remember, members should consult official EPF communications for the most up-to-date information.
The EPF has recently implemented a significant restructuring, reorganizing its existing two accounts into three. The much-anticipated addition is the flexible account, designed to empower contributors with greater financial accessibility. Let’s delve into what EPF members should know about this new account:
- Account Distribution
Starting from May 11, monthly contributions will be distributed across three accounts as follows:
Account 1 (Akaun Persaraan): 75% of contributions.
Account 2 (Akaun Sejahtera): 15% of contributions.
Account 3 (Akaun Fleksibel): 10% of contributions. - Flexibility and Withdrawals
Akaun Fleksibel allows for withdrawals at any time, subject to a minimum withdrawal amount of RM50.
Members can transfer a portion of their Akaun Sejahtera savings to Akaun Fleksibel for immediate access during an opt-in window from May 11 to August 31.
The amount distributed depends on the member’s Akaun Sejahtera balance at the time of opting in. - Withdrawal Process
Withdrawals from the flexible account can be made through EPF i-Akaun or any branch nationwide.
Currently, 70% of monthly contributions go to Account 1, which remains inaccessible until retirement. The remaining 30% is directed to Account 2, accessible for education, healthcare, housing, and partial withdrawal at age 50. - Dividends and Opting In
Any withdrawals from Akaun Fleksibel will affect the dividend rate similarly to the previous system.
Opting in is voluntary, and EPF officials estimate that only half of active contributors will choose to do so based on data from Covid-19 special withdrawals between 2021 and 2022.
In summary, the third flexible account provides EPF members with more financial flexibility, emergency access, and the ability to manage their retirement savings effectively. It’s a positive step toward empowering contributors in planning for their future.
Sources:
Third flexible account for EPF from May 11 | FMT
What is EPF Account 3 and How You Can Benefit - CompareHero
Explainer: All you need to know about EPF’s new ‘flexible’ Account 3 | Malay Mail
Remember, members should consult official EPF communications for the most up-to-date information.
Jun 18,2024