In a recent statement, the Ministry of Finance revealed that a total of 2.93 million members of the Employees Provident Fund (EPF) made withdrawals from their Flexible Accounts, amounting to RM6.98 billion.
This information was shared in a written response presented in the Dewan Rakyat on Wednesday.
Average withdrawal amount stood at RM2,382
The Ministry noted that the average withdrawal from the Flexible Account was RM2,382. This significant movement of funds underscores the flexibility and strategic financial planning by EPF members.
The report also highlighted that, as of June 10, RM10.68 billion had been transferred to the Flexible Account. This transfer option allows members to establish an initial amount in their Flexible Accounts, providing more autonomy over their savings.
Concurrently, a substantial sum of RM4.82 billion was transferred to members’ Retirement Accounts, indicating a proactive approach to securing financial stability during retirement.
39,000 more members reaching RM240,000 in savings
The Ministry emphasised the positive impact of these initiatives, noting an increase of 39,000 members who have now achieved the basic savings threshold of RM240,000, reported Sinar Harian.
This milestone reflects the effectiveness of the Flexible Account option in enhancing members’ long-term financial security.
Response to parliamentary inquiry
The Ministry’s statement was in response to a query from Mohd Misbahul Munir Masduk (PN – Parit Buntar), who inquired about any incentives or assistance for members opting to transfer their balance from the Sejahtera Account to the Flexible Account.
The Ministry clarified that no additional incentives or assistance are currently provided for members making this transfer.
Purpose of EPF account restructuring
The restructuring of EPF accounts is aimed at ensuring members’ financial well-being during retirement while addressing their current financial needs.
By offering the Flexible Account option, the EPF encourages members to increase their retirement savings, thereby securing sufficient income to support their lifestyle post-retirement.
