Deputy Finance Minister says that , “ it can be accessed by all the members , be they from the B40,M40 or T20 groups , ”
The introduction of the third account would allow contributors to carry out withdrawals during emergencies , even for those who are under 55 , ” said Ahmad .
This is to ease the financial burden on those facing emergencies.
Told Dewan Rakyat in Response to Kalam Salan
That we are finalising the details and mechanism for this flexible account .
Kalam had asked if the government would allow targeted EPF withdrawals .
Ahmad said that previous practice of allowing EPF withdrawals would no longer be carried out . The withdrawals , he added , had amounted to RM 145 bill
During the tabling of budget 2024 , Prime Minister Datuk Seri Anwar Ibrahim announced that flexible EPF accounts would be introduced where contributors could access them at any time .
He said EPF accounts contributors would also be restricted to empower the savings retirees.
“ the flexible account was among several initiatives under EPF”.
The account , it said, would function like a savings account , and members could withdraw their savings at any time .
The proposal to introduce the account also meets the potential emergencies cash needs.
The current EPF saving scheme structure for members below the age of 55 consists of accounts 1 and account , with a percentage rate of 70 % and 30 % , respectively .
The fund revealed last year that up to 60 percent of active contributors have less than RM 10,000 in their accounts , and under a fifth have adequate savings to meet basic retirement expenses , which EPF suggested would be around RM1,200 a month based on a very conservative estimate .
Zouhair suggested EPF’s contribution restructuring exercise underscored the structural defeat of an economy long bogged down by low wages .
“ This arrangement in my view is optimal . First we must remember that EPF is not a welfare body . EPF collects savings and generates dividends from saving ,”he says .
“ The most important thing that needs to be done now are not EPF withdrawals , but higher and wider government assistance , and higher wages . These are the policy reforms that are needed at the moment .”
“ The amount that we have in our EPF account is solely depending on the salary we receive every month . as long as wages remain low , our retirement savings will also be low .”