KUALA LUMPUR: Employees Provident Fund (EPF) members have withdrawn almost RM7 billion from Account 3 or the Flexible Account as of June 10.
The Finance Ministry said in a Parliamentary written that 3.45 million or 26.6 per cent of the total EPF members under the age of 55 decided to transfer an initial amount to Account 3 from Account 2 (Sejahtera Account) with a total transfer of RM10.86 billion being made as of that date.
It said a total of RM4.82 billion was transferred to Account 1 (Retirement Account) with the restructuring of EPF accounts.
"Meanwhile, 2.93 million (22.6 per cent) of members under the age of 55 have made withdrawals from Account 3, with the total withdrawal amounting to RM6.98 billion," the ministry said.
It said this in response to Datuk Seri Sh Mohmed Puzi Sh Ali (BN-Pekan) who enquired the minister about the current statistics on the withdrawals made by EPF members on the restructuring of accounts.
At the same time, the ministry added that the restructuring of EPF accounts was carried out to ensure more sustainable financial wellbeing during retirement while balancing the current needs of the members.
"The initiative aims to help increase the retirement savings of the members to allow them to have sufficient retirement income to support their future retirement life.
"With this initiative, the government strives to ensure that every EPF member can confidently and resiliently manage their finances in the dynamic and challenging environment (in the economy) today."
Effective May 11, all EPF members under the age of 55 will have their accounts restructured from the two accounts previously into three.
The three accounts are the Retirement Account (Account 1) to accumulate savings that will serve as income during retirement, the Sejahtera Account (Account 2) to address life cycle needs that contribute to wellbeing during retirement and the Flexible Account (Account 3) as a new account that provides flexibility for short-term financial needs.
All contributions after May 11 will be allocated into the new accounts in the following manner: 75 per cent into Account 1, 15 per cent into Account 2 and 10 per cent into the Flexible Account.
Meanwhile, from May 12, 2024 until Aug 31, 2024, EPF members will have a one-time option to transfer one-third of their savings balance from Account 2 to Account 3.