In a recent update, the Ministry of Finance (MoF) revealed that a substantial number of Employees’ Provident Fund (EPF) members under the age of 55 have opted to restructure their accounts, signaling a proactive approach towards managing their finances.
As of June 10, 3.45 million EPF members, comprising 26.6 percent of eligible individuals, have transferred RM10.86 billion from their Sejahtera Account (Account 2) to the Flexible Account (Account 3). This move allows greater flexibility in managing savings for various needs.
Responding to an inquiry from Datuk Seri Sh Mohmed Puzi Sh Ali (BN-Pekan), the MoF disclosed that RM6.98 billion has been withdrawn by 2.93 million members from the Flexible Account, with an average withdrawal amounting to RM2,382.
Moreover, RM4.82 billion has been transferred to members’ Retirement Accounts (Account 1), resulting in 39,000 members reaching a basic savings threshold of RM240,000.
In a bid to bolster retirement savings stability, the MoF highlighted enhancements to the Retirement Account aimed at fortifying members’ financial security. Effective May 11, 2024, the contribution ratio to the Retirement Account will increase by five percent, reaching 75 percent.
“This initiative not only addresses current financial needs but also prepares EPF members for the evolving employment landscape, demographic changes, and life cycle demands,” the ministry emphasized.
The MoF underscored its commitment to ensuring EPF members navigate financial challenges with resilience, fostering confidence in their financial management capabilities amidst today’s dynamic environment.