KUALA LUMPUR: The upcoming rollout of Account 3 by the Employees Provident Fund (EPF) has stirred discussion about its potential impact on the fund's investment strategy and member benefits.
Account 3, also known as the Flexible Account, was mooted to allow EPF members more flexibility in accessing their savings. However, the nature of Account 3 is being questioned.
A social media user commented on Facebook about his concern over the long-term financial security of members.
"I wonder why touch EPF? At least some savings will be there one day if it's not touched! This could be a saviour for people during their old age. 10 per cent is a lot too," she said.
He expressed concern over the potential impact of withdrawals on the economy and labour market.
He added that allowing easy access to EPF funds might discourage workforce participation and worsen labour shortages.
"What is the purpose of having the EPF scheme in the first place? Industries are struggling to get workers. Allowing people to withdraw EPF savings will only keep them away from work and prolong labour shortages," he added.
Another individual commented on a preference for alternative investment options over keeping funds with the EPF, suggesting that withdrawing funds and investing elsewhere could yield better returns than the EPF's dividend rate.
"It is better to invest in other things that offer better returns than EPF," he said.
There was also a comment that offered a constructive suggestion for enhancing EPF's offerings while addressing concerns about fund management.
"Account 3 should be non-mandatory so that contributors won't be forced to save in an account offering lower returns.
"Instead, it should be made a flexible deposit and withdrawal account to attract funds from other sources than the usual salary contributions.
"People can park their extra savings in Account 3 like a savings account.
"This would give EPF more funds to invest while not impacting existing funds in accounts 1 & 2. Contributors will have more returns on their savings too," he added.
He also hoped EPF was aware that its purpose was to support members in their old age, not sooner or at any other time.
The real concern is that savings may be wasted carelessly and would leave them without savings in the end.
On the other hand, some EPF members said that the move sounded like a more practical approach for EPF contributors.
"As Account 3 functions like a regular savings account and the dividend payout is equivalent to the annual EPF dividend (5 per cent to 6 per cent), EPF will probably be able to accumulate a greater amount of funds," was one of the comments on Facebook.
One of X users @izaanfly expressed his anticipation for Account 3's implementation, which was announced during the 2024 Budget by Prime Minister Datuk Seri Anwar Ibrahim.
"If it's flexible like ASB, then better put your money in there because EPF consistently pays a 5% dividend," he added.