EPF Account 3: Most Malaysians appreciate option while others don't wish to touch savings

Member of publics seen walking past KWSP Kuala Lumpur. — YAP CHEE HONG/The Star

PETALING JAYA: While some contributors laud the EPF’s initiative for Account 3 to allow them the flexibility to withdraw funds, others are determined not to touch their savings.

Some agree that this move may help with their daily expenses.

Facebook user Alfancis Augustine wrote: “Won’t disturb my retirement fund but I’m thankful for the option.”

Voicing his support for the news, Instagram user Martin Joseph said: “Wah so good to hear that”.

Mdiah Yassin took to Facebook to note that the latest EPF initiative is a positive step for contributors and a move in the right direction to assist them.

“Langkah baik utk pencarum (it’s a good move for contributors),” she wrote.

On Thursday (April 25), EPF launched Account 3 with members given a one-time opt-in option to transfer funds from their Account 2 to the newly launched “Akaun Fleksibel”.

EPF members would have between May 11 and Aug 31 to decide whether they want to opt in.

From May 11, all EPF members under 55 will now have three accounts from that date: the Akaun Persaraan, Akaun Sejahtera and Akaun Fleksibel.

Akaun Persaraan used to be known as Account 1 while Akaun Sejahtera is Account 2.

EPF members can make withdrawals of a minimum amount of RM50 from Account 3 at any time for any purpose.

Facebook user Somasundaram Venkateswaran expressed concerns that the new initiative might pose challenges for the future of an individual’s savings, adding that “instant gratification” cannot coexist with the “objective of providing sufficient delayed gratification during retirement.”

Selva Kumar said the initiative seemed unlikely to contribute to their financial future.

“…the withdrawal of this 3rd account will become an additional income to spend more on unnecessary expenses,” he countered.

However, some Malaysians appeared to seek clarification about the RM50 minimum sum for withdrawal.

Andrea Carmel voiced her curiosity, wondering, “Can I withdraw RM50 on a daily basis?”

Most praised it as a positive development for financial flexibility, while others voiced doubts about how it would affect long-term savings.

As Maurice Lee conveyed on Facebook, “Ultimately, it is up to the contributor to decide how best to manage their savings.”