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EPF Launches New Account To Ease Contributors’ Retirement Woes

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KUALA LUMPUR: The Employees Provident Fund (EPF) will introduce a new Akaun Emas for members working beyond the age of 55.

All new contributions received after 55 will automatically be parked under Akaun Emas (Gold Account), which can only be withdrawn when they reach the age of 60.

This is to ensure members will have sufficient savings for their retirement.

Akaun Emas will not affect the existing schemes, where members have the option to make full and partial withdrawals upon reaching the age of 55.

EPF chief executive officer Datuk Shahril Ridza Ridzuan said the extra savings during the five-year period would go a long way in serving members’ needs when they retire.

“This is to provide more financial security for members when they retire,” he told a media briefing at the fund’s headquarters here Thursday.

When members reach the age of 60, the balances in Akaun 55 and Akaun Emas will be combined – members will only have one account from this point on.

Shahril said that Akaun 55 is merely the new terminology for the existing Account One and Account Two.

Once members reach age 55, they would not need Account Two as they would be allowed to make a full withdrawal, he said.

Members can also continue to earn dividends from their savings in both Akaun Emas and the balance of their savings in Akaun 55.

The EPF is also extending the dividend payment limit to age 100 from the current age of 75.

“This will benefit members who choose to maintain a portion of their savings with the EPF, allowing them to benefit from the compounding effects of receiving dividends until a full withdrawal is made,” Shahril added.

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