3.5 million EPF members transfer RM11 billion into Account 3

(TMI) – A TOTAL of 3.45 million, or 26.6%, of EPF members under the age of 55 have transferred part of their savings into the Flexible Account, the Finance Ministry said.

As of June 10, RM10.86 billion in total have been transferred into the account.

In a written reply, the Finance Ministry said that a total of RM4.82 billion has been transferred to Account 1 (Retirement Account) following the restructuring of EPF accounts.

The ministry noted that 2.93 million (22.6%) of members under the age of 55 have made withdrawals amounting to RM6.98 billion.

This information was provided in response to Sh Mohmed Puzi Sh Ali (Pekan-BN), who asked about withdrawals following the creation of Account 3.

The ministry said EPF accounts were restructured to ensure sustainable financial wellbeing during retirement while balancing the current needs of the members.

“The initiative aims to help increase the retirement savings of the members to allow them to have sufficient retirement income to support their future retirement life. With this initiative, the government strives to ensure that every EPF member can confidently and resiliently manage their finances in the dynamic and challenging economic environment today.”

Effective May 11, EPF members contribute to three accounts: Retirement (Account 1) to accumulate retirement savings;. Sejahtera (Account 2) to address life cycle needs such as housing and education; and Flexible (Account 3): a new account with flexibility for short-term financial needs.

Contributions made after May 11 will go into the new accounts as follows: 75% into Account 1; 15% into Account 2; and 10% into the Account 3.

From May 12 to August 31, 2024, EPF members have a one-time option to transfer a third of their savings from Account 2 to Account 3.