Scheduled to go live on May 11, all EPF members under the age of 55 will have their funds restructured to the 75/15/10 ratio.

Old structure:

• 70% Account 1: cannot be withdrawn until 55.

• 30% Account 2: can be withdrawn early to pay for education, housing loan, and healthcare.

New structure:

• 75% Account 1 (Akaun Persaraan).

• 15% Account 2 (Akaun Sejahtera).

• 10% Account 3 (Akaun Fleksibel): can be withdrawn any time.

I don’t want Account 3. Can I opt out from it?

No. You cannot opt out from Account 3.

The restructuring will affect all EPF members under the age of 55.

For those who are 55 and above, their savings in all three accounts will be transferred to Akaun 55, and new contributions will be credited to Akaun Emas for retirement at 60.

Can I choose not to have any money credited to Account 3?

No.

Starting 11 May, 10% of your monthly contributions will be distributed to Akaun Fleksibel, regardless of whether you choose to do so or not.

From 12 May to 31 August, you will have a one-time option to transfer part of your savings from Account 2 to Account 3 as an initial amount.

This action cannot be cancelled once completed, and the transferrable amount depends on the balance available in Account 2.

If your balance in Account 2 is more than RM3,000, you can choose to transfer 1/3rd of it to Account 3, and 1/6th of it will be transferred to Account 1:

If your balance in Account 2 is less than RM3,000, you can only transfer up to RM1,000 to Account 3, but no balance from Account 2 will be transferred to Account 1:

Can I opt out from the initial transfer?

Yes.

In this case, the balance in Account 1 and 2 will remain the same and Account 3 will start from zero.

The application for the initial amount can only be made once via the i-Akaun app during a specific period (12 May to 31 August). If you decide to opt in, you can expect the transfer to complete in 3-5 working days.

Will Account 3’s dividend be lower?

No. The dividend rate will be the same across all accounts. According to EPF, the restructuring will not change the existing policy on dividend rates.

Are there any conditions to withdraw from Account 3?

No. You can withdraw from this account any time, with the minimum amount at RM50.

Funds are expected to arrive in your specified bank account in 7 business days.

How do I withdraw my savings from Account 3?

You can apply for Account 3 withdrawal via the i-Akaun app or at EPF offices.

No supporting documents are required, but you would need to have an active bank account to receive the funds.

Can I choose a specific account to voluntarily contribute?

No. You cannot select which specific account to contribute.

Voluntary contributions will be split into the 75/15/10 ratio. So, if you decide to add an extra RM1,000 into your EPF savings this year,

• RM750 ➡️ Account 1.

• RM150 ➡️ Account 2.

• RM100 ➡️ Account 3.

You can voluntarily contribute up to RM100,000 to EPF every year.

Can I transfer my savings from Account 3 to Account 1 and 2?

Yes, but this is a one way transfer.

Members can transfer their savings as follows:

i. Akaun 3 to Akaun 2

i. Akaun 3 to Akaun 1

iii. Akaun 2 to Akaun 1

The funds can only be transferred in one direction and cannot be reversed back into the original account. There is no limit on the amount that can be transferred between accounts.

I hope this gives you a better understanding on EPF’s Account 3! For more detailed information, you can also refer to EPF’s FAQ on their website.

That’s all for this week’s newsletter!

Disclaimer: The information contained in this newsletter is for informational and educational purposes only. Nothing herein shall be construed to be financial, legal, or tax advice.

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