New KWSP members’ 3rd accounts from 11 May 2024
Malaysia’s Employees Provident Fund (EPF), which helps people save for retirement, is changing how it manages members’ money. They’re doing this to give members more security in retirement and help them with their current needs.
Starting from May 11, 2024, instead of two accounts, members will have three accounts:
- Retirement Account: for saving money for retirement.
- Wellbeing Account: for things that make life better during retirement.
- Flexible Account: for short-term needs. You can take money out whenever you need.
EPF wants to help members save enough for retirement and be able to manage their money better. They’re putting most of the contributions into the Retirement Account, some into the Wellbeing Account, and a bit into the Flexible Account.
If you already have money in your accounts, it will stay where it is. New contributions will go into the new accounts. Between May 11 and August 31, 2024, members can choose to move some money from the Wellbeing Account to the Flexible Account. After that, you can’t change your mind. You can do this online or at any EPF branch.
EPF is doing this to help members deal with changes in jobs and life, and to manage money better. They want to make sure members feel secure about their finances.
You can take money out of the Flexible Account anytime, as long as it’s at least RM50. You can do this online or at any EPF branch.
EPF encourages members to sign up for online access to make it easier to manage their money. When you turn 55, your accounts will be merged into the Age 55 Account.
Any new money you put in after that will go into the Gold Account. You can start using the new system from May 12, 2024.
Lastly, similar to current practice, all savings in Akaun Persaraan, Akaun Sejahtera, and Akaun Fleksibel of members who have reached age 55 will be merged into Akaun 55. New contributions received by members from the age of 55 will be credited into Akaun Emas. Members can fully access the system on 12 May 2024.
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