What Is EPF Account 3 And How Do I Utilise It?

Are you still trying to figure out Malaysia EPF’s account restructuring and how it can work for you? Here’s an comparison on the new account structures before and after the restructuring:

Before restructuring : 2 accounts

Effective 11 May 2024 : 3 accounts

What is in Akaun Fleksibel (Account 3)?

For starters, the balance would be RM0 on 11 May 2024.

All new contributions to your EPF account from 11 May 2024 onwards will be distributed into the all 3 accounts including Akaun Fleksibel (Account 3) in the proportions shown below:

How Do I Utilise EPF Akaun Fleksibel (Account 3)?

EPF encourages members to withdraw from their Akaun Fleksibel (Account 3) “only for emergency purposes and immediate needs only” and that makes perfect sense for retirement planning and savings, the whole premise behind the fund.

It helps of course to have the choice to draw on EPF Akaun Fleksibel (Account 3) in the short-term for any unforeseen circumstances especially if you have not built up enough savings or established a separate emergency fund. For example, trying to make ends meet after losing your first job while hunting for the next.

However, it is important to note that EPF has clarified that the dividend rate is the same across all 3 accounts for now i.e. not any different for the new Akaun Fleksibel (Account 3). While other retirement planning and investment options can be considered, each will carry its own risks and rewards. Although past performance is not an indication of future performance, you can get a sense of EPFs historical dividend rates declared here, which has historically provided solid dividend rates.

One thing’s for sure - Akaun Fleksibel (Account 3) provides the opportunity of having more control over your retirement planning and savings. But with greater power, comes greater responsibility.

It would be wise no matter what you choose to do with EPF Akaun Fleksibel (Account 3), to not solely rely on EPF to achieve your retirement goals but also to have another good savings plan. Check out FWD Max Wealth which is a savings plan that grows and maximises your wealth. It provides 304% of your sum assured at maturity. Learn more here.