(Updated: 22 May 2024)
Employees’ Provident Fund (EPF) has restructure its members’ accounts starting 11 May 2024. Account 3 or Akaun Fleksibel is now active. To learn more about this new account structure, you may click here.
Transfer initial amount to Akaun Fleksibel
We can use the KWSP i-Akaun app to initiate the transfer from Account 2. 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 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.
If you want to learn more about the dividend history of EPF, click here.
Update: 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.
Akaun Fleksibel withdrawal
Members can make withdrawals from Akaun Fleksibel at any time for any purpose. The minimum withdrawal amount is RM50. Just follow the steps above in KWSP i-Akaun app to withdraw your fund. The money should be in your bank account within seven days after approval. However, as this function is still unavailable, we will have to wait till EPF makes this function available.
I have no plan to withdraw the fund in Akaun Fleksibel currently. I just want its flexibility and liquidity. Even if I choose to utilise the fund, it is most probably to divert it to my other investments.
Update: The withdrawal function is now available and you may follow the steps to withdraw the money. However, I would advise to withdraw the money only if really necessary.
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 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.
Or if you are not ready to connect yet, join my email list to receive useful information to improve your finances by clicking here.
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.
