KUALA LUMPUR (April 27): The creation of Flexible Account 3 for anytime withdrawals from May 11 means Employees Provident Fund (EPF) members can choose to take out up to a third of the balance in their existing Wellbeing Account 2.
Those who choose not to opt in for the moving of a portion of existing savings from Account 2 to Account 3 by Aug 31 this year starts with zero balance in Account 3, but he or she will still see 10% of new contributions going into the newly created Flexible Account 3.
With the increase in the ratio for Retirement Account 1 to 75% from 70%, the EPF estimates that it is possible to have as many as 65% of its members achieve ‘basic savings’ by 2035, compared with only 33.1% in 2023.
The ratio for Wellbeing Account 2, however, will be halved to 15% from 30%.
While the plan is not as bad as feared, there are broader implications for members and the marketplace.
What do experts and observers say about the change in EPF contribution ratios, and what is at stake for EPF members who choose to spend the money in Flexible Account 3? Can spending just a few hundred ringgit a year from the EPF cause someone to lose five-figure savings at retirement?
Read about that and more in the April 29, 2024 issue of The Edge Malaysia weekly.
Save by subscribing to us for your print and/or digital copy.
P/S: The Edge is also available on Apple’s App Store and Android’s Google Play.
News Related-
Window opens for Zahid to ride off into the sunset – but at Anwar's cost
-
Murder-accused teens 'had preoccupation with torture'
-
A plea for Islamic voices against using human shields - opinion
-
Strengthen MM2H programme, promote multiple entry visa
-
GEG element removed from anti-smoking Bill
-
Health Ministry tables revised anti-tobacco law, omits generational smoking ban
-
Work together with Anwar to tackle economic issues, Perikatan MP tells Muhyiddin and Ismail Sabri
-
Malaysia Airlines launches year-end sale
-
Dr M accuses govt of bribery over allocations
-
Malaysia to check if the Netherlands still keen to send flood experts
-
Appeals court to rule in Isa’s graft case on Jan 31
-
Elephants Trample On Axia With Family Of Three Inside
-
Sirul fitted with monitoring device
-
Nigerian airliner lands at wrong airport