Managing Health Expenses: Getting to Know EPF’s Health Withdrawal Facility

Managing Health Expenses: Getting to Know EPF’s Health Withdrawal Facility
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Managing your finances isn't just about planning for retirement; it's about being ready for life's unexpected twists, especially when it comes to your health and well-being.

Every year, we're all too familiar with the steady climb of medical expenses here in Malaysia. These rising costs don't just impact our present, but they also loom large in our future financial plans, particularly as we think about life after retirement. 

Today, Malaysians are living longer lives, a trend supported by data from the Department of Statistics Malaysia (DOSM), which reveals that the proportion of elderly individuals (aged 65 and above) has increased from 7% in 2021 to 7.3% in 2022, encompassing a significant portion of our population. With Malaysia steadily moving towards becoming an ageing nation by 2030, it's a reality we're all becoming more aware of. 

As we age, it's natural for our personal health to become more fragile. That's why, as we grow older, it becomes increasingly crucial for us to prioritise regular healthcare treatments to maintain our well-being. 

Announced on October 13, 2023, by Prime Minister Datuk Seri Anwar Ibrahim, the 2024 Malaysia Madani Budget has introduced a range of healthcare initiatives aimed at improving the well-being of citizens. 

Among these initiatives is an allocation of RM41.2 billion for the Ministry of Health (MOH), marking a significant increase of RM4.89 billion or 13.45%. This underscores the government's commitment to easing the burden of rising healthcare expenses for the people. Moreover, it's anticipated that this allocation will not only improve healthcare quality but also contribute to the overall comfort and welfare of the population.


Steps that can be taken to help reduce healthcare costs

There are several steps you can take to help reduce healthcare costs in the future, namely: 

  1. Embrace a healthy lifestyle

    Prioritising a healthy lifestyle not only nurtures your physical and mental well-being but also reduces the likelihood of developing chronic illnesses. Incorporating regular physical activity, mindful dietary choices, proper hydration, abstaining from smoking, and ensuring sufficient sleep are all key components of a healthy lifestyle.

  2. Obtain a medical card or insurance policy/ takaful

    If you possess a medical card or insurance policy/ takaful, you can rest assured knowing that your financial well-being is safeguarded against medical expenses. These insurance plans serve as a protective shield, covering your medical bills and alleviating any worries about treatment costs. 

    Moreover, having a medical card grants you the flexibility to seek treatment at private hospitals, where you can benefit from shorter waiting times, state-of-the-art facilities, and enhanced comfort during your healthcare journey.

Health Withdrawals

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EPF Health Withdrawal Facility

Did you know that the EPF provides withdrawal options through Account 2 to help individuals manage their medical expenses? This means that you can tap into your EPF savings to ease the financial burden of healthcare costs.

EPF allows partial withdrawals from Account 2 to cover: 

  • Costs for approved medical treatments  
  • Healthcare equipment 
  • Fertility treatment 

The healthcare withdrawals from EPF extend beyond personal use; Account 2 can also be utilised to cover the medical expenses of your spouse, parents (biological, adopted, step, in-laws), children (biological, adopted, step), and siblings (biological), if you’re 55 years and below. For further details on these withdrawals, click on the link provided below:

Discover Available Withdrawals

*Please note that not all types of critical illness treatments and purchases of healthcare equipment qualify for EPF Health Withdrawal and are subject to EPF's approval. 


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EPF also provides the Member Protection Plan through the i-Lindung platform which is tailored to streamline the purchase of insurance/ takaful products endorsed by the EPF for both you and your family members. You can opt for cost-effective life protection and/ or critical illness insurance coverage, with annual payments drawn from Account 2 for members below 55 years old, or Akaun Emas for members aged 55 and above.  

Conveniently, you can apply through the new KWSP i-Akaun app! 

I Want To Know More About i-Lindung

As we witness the increase in life expectancy and costs of healthcare, it is evident that managing medical expenses is becoming more challenging. In such times, your EPF Account 2 can serve as a lifeline not just for your own medical bills, but also for those of your loved ones. It is prudent to use your EPF Account 2 wisely to ensure that there is a place to turn to in times of need.