The Employees Provident Fund (EPF) is gearing up to introduce Account 3, also known as the flexible account, by the end of April, according to The Star. While an exact date for the launch has not been confirmed, it is anticipated to be unveiled by the end of the month.
Source: The Star
Under the restructuring exercise, Account 1 will be renamed as Account Persaraan (Retirement Account), while Account 2 will be referred to as Account Sejahtera. The addition of Account 3 aims to provide members with more flexibility in managing their savings.
Starting May 11, members aged below 55 will see their accounts restructured from two accounts into three. Currently, 70% of their contributions go into Account 1, while 30% is allocated to Account 2. However, after the introduction of Account 3, the new contributions will be split differently: 75% to Account 1, 15% to Account 2, and 10% to Account 3.
Members will have the option to transfer funds from Account Sejahtera to the flexible account through an opt-in mechanism. The deadline for opting in for the initial amount in the flexible account is August 31, 2024. During the accumulation phase from May to August, members can select their initial amount.
Savings from the flexible account can be withdrawn at any time, with a minimum withdrawal amount of RM50. For members with savings of less than RM3,000 in Account 2, RM1,000 will be transferred to the flexible account.
Despite the introduction of Account 3, EPF dividends are expected to remain the same. According to EPF, Account 3 is designed to function like a savings account, allowing members to withdraw their savings as needed, catering to potential emergency cash needs.