All About EPF’s Account Restructuring

All About EPF’s Account Restructuring
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The Employees Provident Fund (EPF), established in 1951, is one of the oldest and largest retirement savings funds in the world. Our purpose is to be a social security organisation especially in providing retirement benefits to private sector workers and non-pensioners in Malaysia. Recently, the Malaysian government implemented the restructuring of EPF accounts from two (2) to three (3) accounts Akaun Persaraan, Akaun Sejahtera, and Akaun Fleksibel.

This initiative seeks to empower Malaysians to confidently navigate their financial journey by strengthening retirement savings adequacy, aligning financial goals with the different stages of life, adapting to evolving employment landscape, and addressing short-term financial needs for long-term wellbeing.

What is EPF Account Restructuring?

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The EPF Account Restructuring is aimed at enhancing members’ retirement income security while addressing their current life cycle needs. Under this initiative, members’ accounts will be restructured from two (2) accounts to three (3) accounts:

  • Akaun Persaraan (originally Account 1): This account remains unchanged and is dedicated to your retirement savings and investments.
  • Akaun Sejahtera (originally Account 2): This account covers your pre-retirement needs, allowing for a portion of your savings to be used for specific purposes (Housing, Education, Health, Insurance Protection/ Takaful, Hajj, Age 50 Years Old). 
  • Akaun Fleksibel (Account 3): This newly created account allows members to withdraw savings at any time, to meet the potential emergency cash needs of members.   

Starting from 11 May 2024, new contributions will be credited across your Akaun Persaraan, Akaun Sejahtera, and Akaun Fleksibel as follows: 

epf new account distribution rate

The restructuring of EPF accounts impacts all EPF members, including non-Malaysians who have not reached the age of 55 by 11 May 2024. For current members aged 55 and above, there will be no changes to their current account structure (Akaun 55 and Akaun Emas).

When the account restructuring is implemented, existing balances in Account 1 and Account 2 will remain in Akaun Persaraan and Akaun Sejahtera, respectively. Meanwhile, Akaun Fleksibel will start with RM0 balance. 

akaun fleksibel balance

Savings in the Akaun Fleksibel will increase when new contributions are credited or through the initial amount transfer option.

What is Akaun Fleksibel?

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Akaun Fleksibel is designed to meet members’ short-term financial needs. Savings in Akaun Fleksibel can be withdrawn once per day, with a minimum withdrawal amount of RM50 per day.

While you have the freedom to withdraw funds whenever necessary, it's encouraged for members to utilise them wisely, prioritising emergencies and immediate needs to ensure long-term financial stability.

Akaun Fleksibel Withdrawals are subject to the following conditions:

  • Below 55 years old. 
  • Have savings in Akaun Fleksibel. 
  • The minimum withdrawal limit is RM50. 

Members can opt for the initial amount transfer starting from 12 May 2024 until 31 August 2024. This application can only be made once during the period and cannot be cancelled.  

The determination of this initial amount in Akaun Fleksibel is subject to whether the savings balance in Akaun Sejahtera as of the application date, as illustrated in the following scenarios.

Initial amount transfer scenarios

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Members with a savings balance of RM3,000 and above in Akaun Sejahtera:

how is akaun 3 calculated

  • Ten out of thirty (10/30) of the Akaun Sejahtera savings will be transferred to the Akaun Fleksibel 
  • Five out of thirty (5/30) of the Akaun Sejahtera savings will be transferred to the Akaun Persaraan
  • The remaining balance of fifteen out of thirty (15/30) will remain in the Akaun Sejahtera


Transfer of savings balance below RM3,000 in Akaun Sejahtera: 

how is akaun 3 calculated

how is akaun 3 calculated

  • Akaun Sejahtera with savings exceeding RM1,000 but not surpassing RM3,000 will see an amount of RM1,000 transferred to the Akaun Fleksibel, while the remainder will remain in the Akaun Sejahtera.
  • For Akaun Sejahtera with savings of RM1,000 and below, the entire amount will be transferred to the Akaun Fleksibel.
  • No distribution to the Akaun Persaraan will occur for those with savings below RM3,000.

This initiative offers members a systematic method to oversee their savings, guaranteeing adaptability and deliberate allocation tailored to each member's unique financial circumstances. To ensure a seamless and efficient process, members can apply through the KWSP i-Akaun app or the Self-Service Terminals (SST) available at any EPF office nationwide.  

What if I choose not to opt for the initial amount transfer?

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Should you choose not to have an initial amount, your current account balances will remain in Akaun Persaraan and Akaun Sejahtera. However, new contributions will be credited into Akaun Persaraan (75%), Akaun Sejahtera (15%), and Akaun Fleksibel (10%). 

Withdrawals from your EPF accounts will follow the existing terms and conditions. Additionally, the transfer of the initial amount to Akaun Fleksibel will take effect within 3-5 working days. 

Can funds be transferred from Akaun Fleksibel to Akaun Sejahtera or Akaun Persaraan?

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Members can transfer their savings as follows: 

  • Akaun Fleksibel to Akaun Sejahtera
  • Akaun Fleksibel to Akaun Persaraan
  • Akaun Sejahtera to Akaun Persaraan 

You can refer to the illustration below for clarification: 

Once transferred, savings cannot be reversed back to the original account. Transfers from Akaun Persaraan to Akaun Sejahtera and/or Akaun Fleksibel are not allowed, as Akaun Persaraan is primarily designated for retirement savings.

I Want To Know More

The EPF's new account restructuring, featuring the introduction of Akaun Fleksibel, empowers you with greater control over your retirement savings. While the temptation to access funds whenever needed is understandable, it's essential to remember that life often presents unexpected challenges. Let's not lose sight of the need to strike a balance between flexibility and the long-term goal of building a secure retirement nest egg.