Employees’ Provident Fund (EPF) has restructure its members’ accounts starting 11 May 2024. To learn more about this new account structure, you may click here. Your Akaun Fleksibel is now active and has been receiving its portion if you have made contributions in the past few months.
The deadline for the transfer of an initial sum to Akaun Fleksibel is 31 August 2024. After this date, you will not be able to select this option. I have decided to opt in for the flexibility that this account offers. The main reason is that EPF is still giving the same dividend for all these three accounts for the time being. However, if the dividend rates differ in the future for the three accounts, I might choose to reduce the portion in my Akaun Fleksibel.
Transfer Initial Amount to Akaun Fleksibel
We can use the KWSP i-Akaun app to initiate the transfer from Akaun Sejahtera. You just have to follow the steps above. It will show you the balance before and after transferring in step 6. You may to click the tab above your balance before proceeding. The overall process of initiating the transfer would not take more than five minutes. To learn more about about how the amount is calculated, you may click here.
This opt-in option is only available till 31 August 2024 and it is irrevocable. You should see your balance in Akaun Fleksibel within three to five working days. I submitted my application on 12 May and received the approval on 15 May. My Akaun Fleksibel has the sum in it on 16 May.
If you want to learn more about the dividend history of EPF, click here.
Should You Opt In?
It all depends. I do not recommend you to utilise your retirement fund for other purposes, unless it is a life-and-death situation. However, some opportunities that offer better return than EPF might arise and you might decide to invest part of your retirement fund to grow it further. The flexibility offered by Akaun Fleksibel will let you grab these opportunities. Nonetheless, every investment comes with its own risk. You should think it through and only invest your money if you can tolerate the risk.
If you are the type that would spend any money on hand, perhaps it is better to keep the money untouchable. Otherwise, there is a high chance that your money in Akaun Fleksibel will be gone before you know it.
In conclusion, whether to opt in to transfer an initial amount to Akaun Fleksibel or not depends on your individual circumstances and also personality.
How can a financial planner help you?
As every individual has different circumstances, I will help you to decide if you should opt in to transfer an initial amount to Akaun Fleksibel. Depending on your personal circumstances, it might be better to leave the money in Akaun Sejahtera. We will also look at the ways that you could utilise the fund, if you choose to opt in. As the money in EPF is meant for retirement, we should not spend it frivolously.
As EPF is part of your retirement fund, I can also help you to devise a retirement plan. We will look at your current and future resources to determine if you have a retirement gap or surplus. Most people will have a retirement gap. We will devise ways to fill this retirement gap to ensure that you will have a comfortable retirement when the time comes.
If you want to discuss about your own EPF account, just leave your details by clicking the button below. I will reach out to you and see how I can help.
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Disclaimer: This post is for informational purpose only. You should use judgment and conduct due diligence before taking any action or implementing any plan suggested or recommended in this article.
