Accounts for members of the Malaysian Employees Provident Fund Board are divided into Account 1 and Account 2 . Account 1 accounts for 70% of the entire account, while Account 2 accounts for 30%.
The savings in Akaun 1 are a veritable pension or superannuation fund and no withdrawals from Akaun 1 are allowed until the retirement age of 55.
We all know that savings in Account 2 can be withdrawn to buy a home, pay for medical bills, education, etc. However, did you know that there are 6 circumstances under which a member can apply to withdraw their entire savings?
1. When a member is 55 years old or above
When a member reaches the age of 55, he/she can apply to withdraw his/her entire savings, this includes savings from the First and Second Accounts. Members can choose to withdraw the full amount or a specified amount.
2. When a member reaches the age of 60 or above
If a member chooses to continue working after reaching the age of 55, the amount credited to the EPF account in the following month will be credited to the Akaun Emas account. akaun Emas can only be withdrawn when the member reaches the age of 60.
3. Civil Servants who opt for the Retirement Fund
Civil servants who have opted for the Retirement Civil Servants Fund (KWAP) can apply for a lump sum withdrawal of their CPF savings before they reach the age of 55.
4. People with Disabilities
In the unfortunate event that a EPF member becomes disabled and is unable to work, the member may choose to withdraw the entire savings in the EPF.
5. Those who leave Malaysia
EPF members who choose to renounce their Malaysian citizenship can withdraw their EPF savings in full before leaving Malaysia. Members who are not Malaysian citizens may also claim their entire savings before leaving Malaysia.
6. Death of a member
In the unfortunate event of a EPF member’s death, his or her heirs may claim the entire savings.
