A Malaysian’s late night question about whether terminally ill patients can withdraw all their EPF (Employees Provident Fund) savings has sparked widespread discussion online.
In a Threads post, the user asked whether someone who had only a few months left to live could take out their entire KWSP savings and use the money during their remaining time.
View on Threads
A commenter then claimed she had previously emptied the money in her former Account 2 after doctors suspected she had cancer.
She allegedly quit her job and travelled for several months, only to later find out during a checkup that she did not have cancer.
However, the actual EPF withdrawal rules are more specific than the viral comment may suggest.
You may withdraw everything under Incapacitation Withdrawal
According to the Employees Provident Fund, members may withdraw their entire EPF savings through the Incapacitation Withdrawal if their physical or mental condition prevents them from working.
The withdrawal covers the savings across the member’s EPF accounts, rather than only the former Account 2.
To qualify, the applicant must:
- Be below 60 years old
- Have savings with EPF
- Be unemployed
- Be certified by a medical practitioner as physically or mentally incapacitated
- Be assessed by the EPF medical board
An appointment with the EPF medical board will be arranged after the application is submitted at an EPF counter.
EPF also reserves the right to verify the submitted medical reports with the relevant medical institutions.
This means that being diagnosed with cancer, a terminal illness or another serious condition does not automatically allow someone to withdraw all their savings.
The main consideration is whether the medical condition has left the person incapable of continuing to work, subject to EPF’s assessment.
Eligible members may also receive RM5,000
Malaysian members who successfully apply for the withdrawal may also qualify for an additional RM5,000 Incapacitation Benefit.
However, the benefit is awarded at EPF’s discretion.
To qualify, the member must:
- Be Malaysian
- Be below 60 years old
- Have worked continuously for at least six months in their previous employment
- Have lost or ended their employment due to being incapable of working
- Apply within 12 months from the date their employment ended
The RM5,000 benefit is separate from the member’s own EPF savings.
What documents are needed?
Those applying for an Incapacitation Withdrawal generally need to prepare:
- Form KWSP 9L (AHL)
- Identification documents
- Bank account details
- An original medical report
- A confirmation letter from the employer stating the reason for resignation or termination, where applicable
The medical report must include the medical institution’s details, along with the attending doctor’s signature, stamp, full name, designation, registration number and medical discipline.
Applicants may refer to the full checklist on EPF’s Incapacitation Withdrawal page.
What if the person is seriously ill but can still work?
Members who need money for treatment but are still capable of working may instead consider the EPF Health Withdrawal.
This option allows members below 55 years old to make a partial withdrawal from their Akaun Sejahtera, which was previously known as Account 2.
The money may be used to cover approved medical treatments, healthcare equipment and fertility treatments.
Members may apply for themselves or certain family members, including their spouse, children, parents and biological siblings.
Applicants must have savings in Akaun Sejahtera, and the medical costs must not be fully covered by their employer.
The illness, treatment or medical equipment must also be approved by EPF.
Unlike the Incapacitation Withdrawal, this option does not allow members to empty all their EPF accounts. It is meant to cover eligible medical costs using the available balance in Akaun Sejahtera.
Akaun Fleksibel can be withdrawn at any time
Members below 55 years old may also withdraw whatever money is available in their Akaun Fleksibel.
No medical reason is required, although the account must contain at least RM50.
Members can apply through the KWSP i-Akaun app, the i-Akaun web portal or an EPF office.
However, they can only withdraw the amount available in Akaun Fleksibel, not their entire EPF savings.
Under EPF’s three-account structure, new contributions are divided as follows:
- 75% into Akaun Persaraan
- 15% into Akaun Sejahtera
- 10% into Akaun Fleksibel
EPF states that Akaun Fleksibel is intended for short-term financial needs and encourages members to use it only for emergencies and immediate needs.
So, can a terminally ill person withdraw everything?
Potentially, yes.
However, a terminal diagnosis alone does not automatically make someone eligible to empty their EPF savings.
The person must generally be unemployed, medically incapable of working and approved following an assessment by the EPF medical board.
Those who remain able to work may only qualify for other options, such as using Akaun Sejahtera for approved medical expenses or withdrawing the available amount from Akaun Fleksibel.
Members facing such circumstances should refer directly to the official EPF website or visit an EPF branch, as approval depends on the applicant’s medical condition, employment status and supporting documents.
