Malaysians Have Withdrawn RM7.81 Billion From EPF Account 3

The Finance Ministry has recently put out a written reply in Parliament on the amount of transactions recorded for the new EPF flexible account. 

It was revealed that Employees Provident Fund (EPF) members have withdrawn RM7.81 billion from Account 3 or the Flexible Account as of 24 June.

RM11.52 billion transferred, RM7.81 billion withdrawn

According to the MoF statement, around 3.61 million or 27.8 percent of the total EPF members under the age of 55 had decided to transfer an initial amount to Account 3 from Account 2 (Sejahtera Account). Up till this point, a total transfer of RM11.52 billion has been made.

The ministry said that a total of RM5.12 billion was transferred to Account 1 (retirement account) with the restructuring of EPF accounts.

Additionally, around 3.16 million (24.3 percent) of EPF members under the age of 55 have made withdrawals from Account 3. The total withdrawal amount has reached RM7.81 billion.

EPF accounts for members under the age of 55 were restructured in May 2024 to have three different accounts instead of two.

One time transfer window closes 31 August 2024

The three accounts are the Retirement Account (Account 1) which is meant to help members accumulate savings to financially support them during retirement, the Sejahtera Account (Account 2) to address life cycle needs that contribute to well-being during retirement and the Flexible Account (Account 3) as a new account that offers flexible withdrawals to address short-term goals or needs.

Since 11 May 2011, all EPF contributions have been allocated in the following manner: 75 percent into Account 1, 15 percent into Account 2 and 10 percent into the Flexible Account.

Also, EPF members will have a one-time option to transfer one-third of their savings balance from Account 2 to Account 3 until 31 August 2024.

Read More: [Updated] Everything You Should Know About EPF Account 3