The Account 2 Support Facility (FSA2) is aimed at enabling EPF members to make advance application for Age 50 or Age 55 Conditional Withdrawal in obtaining personal financing from banking institutions.
Who Can Apply
Malaysian citizen aged 40 years & above, but has
not yet reached the age of 55 years (For Phase 1)
The Account 2 Support Facility is to enable EPF member applies for advance notice of Conditional Withdrawal age 50 years or 55 years to assist the EPF member obtains personal financing from a banking institution.
The advance application allows members to consider using their savings in Account 2 to obtain personal financing from participating banking institutions where the payment will only be made to the banking institutions when the member reaches the age of between 50 to 55 subject to the member’s choice of withdrawal age.
At the same time, members are required to pay the monthly installments as per agreement with the banking institutions.
i) Open to EPF members who have not reached the age of 55
ii) Malaysian citizens
iii) Application is one-time only
iv) Approved application cannot be cancelled
v) Minimum savings amount of RM3,000 in EPF Account 2
vi) The maximum amount for conditional withdrawal is not more than RM50,000 in Account 2 (subject to the amount of personal financing approved by banking institutions)
Note: Members are required to undergo an awareness assessment and understanding of the Account 2 Support Facility with the banking institutions before deciding whether to take on the personal financing or not. In addition, during the financing period, members can seek further financial advice directly from EPF Retirement Advisory Service (RAS), AKPK, or the banking institutions’ financial advisor, if there is a need.
Applications can be made online through the participating banking institutions. There are 3 main steps that members need to take:
i) Step 1: Check EPF Account 2 eligibility through the participating banking institutions’ portal;
ii) Step 2: Apply for personal financing via the participating banking institutions’ portal according to the agreed terms and conditions with the banking institution;
iii) Step 3: Submit the advance application for Age 50 or Age 55 Conditional Withdrawal to the EPF through the participating banking institution portal, based on the approved amount of personal financing by the banking institution.
The eligibility amount for the financing through the Age 50 or Age 55 Conditional Withdrawal is based on the savings amount in Account 2 minus any withdrawals that have not been approved (if any) such as Education and Health Withdrawals, etc.
An illustration on eligibility calculation is as follows:
Account 2 savings balance
Pre-retirement withdrawal application amount that has not been approved
Advance eligibility amount
Maximum financing limit is RM50,000
Not eligible because it does not meet the minimum requirement of RM3,000
Note: The actual amount of the Conditional Withdrawal for Age 50 or 55 is based on the amount of personal financing approved by banking institutions.
Members are not encouraged to make more than one personal financing application. If a member submits more than one application, the EPF will only approve the first Age 50 or Age 55 Conditional Withdrawal application received from the member.
If a member dies before reaching the chosen age specified in the advance notice of the Conditional Withdrawal Age 50 Years or Age 55 Years, the conditional withdrawal application is rescinded, and all the deceased member’s savings will be distributed to the heirs / nominees according to the existing Death Withdrawal and Nomination policy.
After full withdrawal has been approved by the EPF, the EPF will pay the total withdrawal amount in the Conditional Withdrawal Age 50 Years or Age 55 Years application, together with the accumulated dividends into the member’s financing account with the banking institution.
Members are responsible for notifying the EPF when early settlement of the personal financing has been made.
Upon receiving the notification, the EPF shall rescind the Conditional Withdrawal Age 50 Years or Age 55 Years.
If the EPF does not receive any notification, the withdrawal amount in the Conditional Withdrawal Age 50 Years or Age 55 Years, together with the accumulated dividends, will be paid into the member’s financing account with the banking institution upon reaching the chosen age.
Even though the Conditional Withdrawal Age 50 Years or Age 55 Years is subject to the member’s savings in Account 2 - member who has been declared bankrupt by the Department of Insolvency Malaysia may refer to the participating banking institutions for further information.