EPF’s New 3-Tier Account Structure: What You Need to Know

The Employees Provident Fund (EPF) has officially implemented its much-anticipated account restructuring as of 11 May 2024. Here’s what you need to know about the new 3-tier account system:

1. The Three Accounts
   • Akaun Persaraan: For long-term retirement savings (75% contribution)
   • Akaun Sejahtera: For retirement wellbeing needs (15% contribution)
   • Akaun Fleksibel: For short-term financial flexibility (10% contribution)
2. Greater Flexibility
   • The new Akaun Fleksibel allows you to withdraw savings as needed for short-term purposes.
   • This provides more control over your EPF savings to meet immediate financial needs.
3. Check Your Accounts
   • If you’re below 55, log into your EPF account now to view the new 3-tier structure.
   • Your previous Account 1 and 2 balances have been transferred accordingly.
   • Akaun Fleksibel starts with a zero balance and will accumulate funds going forward.
4. Increased Retirement Savings
   • By separating long-term and short-term funds, the EPF aims to help members save more for retirement.
   • The higher 75% allocation to Akaun Persaraan should boost your post-retirement income.
5. Plan Ahead
   • Review your new EPF accounts and plan how to utilize the Akaun Fleksibel responsibly.
   • Consider adjusting your finances to maximize contributions to the retirement accounts.
   • Stay updated on any future EPF changes or announcements.

The EPF account restructuring provides greater flexibility while encouraging higher retirement savings. Take advantage of this opportunity to secure your financial future effectively.