EAccounts of Malaysian Employees Provident Fund Board members are divided into Account 1 (Akaun 1) and Account 2 (Akaun 2). Account 1 accounts for 70% of the total deposits while Account 2 accounts for 30% of the total deposits.
The savings in the first account is a veritable pension or retirement fund, and you are not allowed to withdraw the savings in the first account before you reach the retirement age of 55.
We all know that the savings in the second account of the provident fund can be withdrawn for the purpose of purchasing a house, paying medical bills and education expenses. However, did you know that there are 6 circumstances under which a member can apply to withdraw all of his or her savings?
1. The member is 55 years old or older
Members can apply to withdraw all their savings when they reach the age of 55, which includes the savings in their first and second accounts. Members can choose to withdraw the full amount or withdraw the required amount.
2. Member is 60 years old or above
If the member chooses to continue to work after reaching the age of 55, the next monthly deposits made to the EPF account will be deposited to the Akaun Emas account. The Akaun Emas can only be withdrawn when the member reaches the age of 60.
3. Civil servants who choose the retirement fund
Civil servants who choose the Retirement Civil Service Fund (KWAP) can apply for a one-time withdrawal of their EPF deposits before reaching the age of 55.
4. Disabled persons
When a EPF member unfortunately becomes disabled and is unable to work, the member can choose to withdraw the full amount of the savings in the EPF.
5. For those who have left Malaysia
EPF members who choose to renounce their Malaysian citizenship can withdraw the full amount of their EPF savings before leaving Malaysia. Members who are not Malaysian citizens can also withdraw all their savings before leaving Malaysia.
6. Death of a member
In the unfortunate event of the death of a EPF member, the heir will be able to apply for the withdrawal of all the savings.
