Retirement is a significant milestone, and your Employees Provident Fund (EPF) savings play a crucial role in securing your financial future. Knowing when and how to withdraw your EPF funds can help you maximise your retirement income.
In this guide, we’ll cover:
✅ When you can withdraw EPF for retirement
✅ Types of retirement withdrawals (full, partial, or phased)
✅ Key considerations before accessing your EPF savings
When Can You Withdraw EPF for Retirement?
1. Age 50 (Optional Partial Withdrawal)
- You can make a withdrawal from your Akaun Sejahtera, either partially or entirely. However, this withdrawal can be applied only once to assist with your pre-retirement financial planning.
- This is optional—ideal for those who need supplemental income before full retirement.
2. Age 55 (Full Withdrawal Eligibility)
- At 55, you can withdraw 100% of your EPF savings.
- Your savings will be transferred to Akaun 55, where you can choose to:
- Withdraw everything at once
- Keep funds in EPF to continue earning dividends (around 5-6% annually)
- Make partial withdrawals as needed
- Should you choose to continue working after the age of 55, all further contributions you make will be credited in your Akaun Emas, to be withdrawn only upon reaching age 60.
3. Age 60 (Mandatory Transfer to Akaun Emas)
- If you haven’t withdrawn by 60, your EPF balance moves to Akaun Emas.
- You can still withdraw anytime or leave it to grow with dividends.
Key Considerations Before Withdrawing
1. Should You Withdraw Fully or Keep Funds in EPF?
✅ EPF offers ~5-6% annual dividends—higher than most fixed deposits.
✅ Partial withdrawals allow flexibility while keeping savings growing.
❌ Full withdrawal risks overspending—many retirees deplete funds too quickly.
2. How Much Should You Withdraw Monthly?
- Follow the 4% Rule: Withdraw 4% of your EPF yearly to make it last 20+ years.
- Example: If you have RM500,000, withdraw RM20,000/year (RM1,667/month).
3. Alternatives to Full Withdrawal
- EPF Lifetime Monthly Income (Monthly Payment Withdrawal) – Get a steady payout for life.
Final Thoughts
Your EPF is designed to support you throughout retirement, not just at 55. By planning wisely—whether through partial withdrawals, keeping funds in EPF, or reinvesting—you can ensure long-term financial security.
Need help calculating your ideal EPF withdrawal strategy? Drop your questions below!
How can a financial planner help you?
I will help you to determine your retirement need with your inputs. After that, we will find out your assets that could function as your retirement resources. If there is a retirement gap, I will recommend some ways to bridge the gap. If there is a retirement surplus, you have done well but you still have to review your situation once in a while.
In both situations, I will devise a retirement plan for you, taking into consideration all your preferences and concerns (including EPF, investments, and lifestyle goals). I will help you to monitor your progress and suggest adjustments to your plan when required. If you could not follow the plan or have some changes in your life, feel free to reach out to modify the plan.
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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.