Not too long ago, I decided to withdraw some money from my Employees’ Provident Fund (EPF) Akaun Fleksibel. In this article, I will share my experience.
EPF Akaun Fleksibel Withdrawal Process
To perform withdrawal, you can go to your KWSP i-Akaun app. In the app, click on Withdrawal at the bottom and select Feksibel icon on the next page.
It is stated that the minimum withdrawal amount is RM 50. If you do not have any withdrawal history and withdrawal amount exceeds RM 3,000, thumbprint verification via Self-Service Terminal (SST) at any EPF office is required. However, it differs with the guide on EPF official website which states that verification is needed for withdrawal application exceeding RM 10,000. I am not sure which one is correct.
After that, click the Withdraw Savings button. Enter your withdrawal amount. On the next page, you will have to enter your bank details. Your bank account must be active and is registered under your own name. Joint account is not acceptable.
Proceed with the request until your application is submitted. Then you just have to wait for it to be processed.
Other than the i-Akaun app, you can also use the website to submit the withdrawal application. You can also walk in to EPF branches for withdrawal purpose.
Withdrawal Timeline
The acknowledgement states that the money will be deposited in the bank account within seven days. Nonetheless, I received the money after two days. I submitted the application on Thursday and received the money on Saturday. Overall, the process is considered quite fast.
Reason for Withdrawal
I withdrew the money in order to transfer it to Simpan SSPN Prime for the tax relief. Though the dividend of Simpan SSPN Prime is not high, as my tax rate is not that low, the tax relief is quite significant for me. Nonetheless, I might choose to withdraw the money next year and put it back to EPF if the dividend rate of Simpan SSPN Prime is still low and forfeit this tax relief in 2025.
If you want to learn more about the dividend history of EPF, click here.
Conclusion
The withdrawal from Akaun Fleksibel is fairly simple and quick. However, I still think that the money should not be accessed frivolously. EPF is designated for our retirement, and its dividend rate is quite good thus far, so we should let the money compound for as long as possible.
How can a financial planner help you?
I will discuss with you whether you should withdraw money from your EPF account. We will also see how the withdrawal will impact the amount that you would receive at retirement. Perhaps we could also explore other avenues for you to raise the money, other than EPF. Besides that, we could also discuss on other aspects of your personal finance such as investment and tax planning.
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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.
