EPF savings are for retirement. It is divided into two (2) accounts – Account 1 and Account 2 of which:
- Account 1 – comprises 70 percent of members’ savings which can only be withdrawn when reaching retirement age.
- Account 2 – comprises 30 percent of members’ savings, where members can make pre retirement withdrawals aimed at enhancing members’ retirement well-being.
FAQ:
Q: When can members withdraw the savings in Account 1?
A: The savings can only be withdrawn when a member reaches the age of 55.
Q: Can members invest using their savings in Account 1?
A: Part of the savings in Account 1 can be used to invest in unit trusts through EPF-approved Fund Management Institutions. Know more about EPF Enhancer.
Q: When can members withdraw their savings in Account 2?
A: The savings in Account 2 can be withdrawn for the following purposes:
- Housing Withdrawal
This scheme allows members to own a comfortable home upon retirement.
- Education Withdrawal
This scheme allows members to finance the cost of higher education at diploma level and above. A good education can help improve members’ / members’ children’s standards of living as well as increase their retirement savings.
- Medical Withdrawal
This scheme allows members to pay for medical expenses incurred for the treatment of critical illnesses and/or to buy medical aid equipment as approved by the EPF Board for yourself or your allowed family members.
- Age 50 Years Withdrawal
This scheme allows members to prepare and plan before reaching retirement.
- Withdrawal Of Savings Of More Than RM1 Million
Members with savings of more than RM 1 million can withdraw their savings in excess of the RM 1 million, subject to a minimum amount of RM50, 000 (which means that members must have savings of at least RM1.05 million). This withdrawal can be made once every 3 months
- Hajj Withdrawal
Helps members to finance the expenses of performing Hajj. This withdrawal only covers the basic expenses and not the entire cost.
Q: When can full withdrawal of the EPF savings be made?
A: Full withdrawal from Account 1 and Account 2 can be made if the following criteria are met:
- upon reaching the age of 55
- upon emigration to another country
- the members have been confirmed incapacitated, physically or mentally, having achieved the level of Maximum Medical Rehabilitation (MMI) to work
- upon death with payment made to the nominee / next of kin / beneficiaries / administrators
- a civil servant under the pension scheme or a civil servant who has opted for early retirement are entitled to receive all of the savings including dividends from the employee’s contribution, whereby the employer’s (Government) contribution is returned to the Retirement Fund Incorporated (KWAP)
Q: What other benefits do I get as an EPF member?
A: Apart from Death and Incapacitation Withdrawal, beneficiaries or members themselves are entitled to receive an additional payment (not from member’s saving) from EPF as a gesture of compassion. The benefit eligibilities are as follows:
- Death Benefit of RM2,500, provided that withdrawal is made within six (6) months from the date of passing, and the deceased member has not reach the age of 55.
- Disability Benefit of RM5,000, provided that the disability withdrawal is done within one (1) year from the date the member loses his or her employment due to his or her disability before reaching the age of 55.
Take note that any pre-retirement withdrawals (Account 2) will reduce the total amount of members’ retirement savings. Withdraw your retirement savings only when it is absolutely necessary. EPF savings is for retirement, not for present day consumption. Turning your EPF saving into investment with the help of EPF Enhancer to realise your retirement dream.
