EPF members have nine more days to transfer funds (Poll Inside)

PETALING JAYA: Aug 31 is the final day for Employees Provident Fund (EPF) members to apply for a one-time transfer of funds from Account 2 (Akaun Sejahtera) to Account 3 (Akaun Fleksibel).

Many members have already taken advantage of this option to enhance their cash flow, while others are planning to do so before the deadline.

ALSO READ: QuickCheck: Does EPF have new rules for beneficiary nominees?

As of July 19, EPF reported that 3.8 million members or 29.3%, have transferred RM12.6bil into Akaun Fleksibel.

Additionally, RM8.9bil has been withdrawn by 3.4 million members under the age of 55.

ALSO READ: A step-by-step guide on transferring funds to EPF Account 3

EPF emphasised its commitment to ensuring that members are fully informed to make the best decision for their circumstances before the Aug 31 deadline.

“More members now better understand the rationale behind the introduction of Akaun Fleksibel,” said EPF when contacted.Senior executive Mohd Nizam Zairuldin, 27, said he has opted to transfer funds into Account 3 since May.

“Having this money as a safety net for emergencies is very reassuring.

“I used the money from the account to pay my credit card debts last month,” he said.

ALSO READ: Hybrid pension scheme proposed to address retirement challenges

Mohd Nizam plans to use the account only for paying off debts, car repairs or medical expenses.

Similarly, 32-year-old data analyst Fatin Abdullah opted in last month and has used RM500 for family travel expenses.

“The process was very simple, with just a click on the EPF mobile app,” she said.

Since May 11, Akaun Fleksibel has been automatically created for all EPF members under 55.

ALSO READ: Over RM11bil transferred to EPF Account 3, Finance Ministry reports

Members have the option to transfer a portion of their Akaun Sejahtera savings to Akaun Fleksibel between May 11 and Aug 31.

Senior finance executive Meshvinny Nelson, 25, plans to make the initial transfer soon to increase her liquidity and access to her savings.

“This also gives me the option to invest in opportunities like the S&P 500 for potentially higher returns,” she said, though she will consider the use of these funds carefully.

Senior analyst Charles Lee, 26, believes there is no downside to transferring funds to Account 3.

“The interest rates are the same, but it provides better liquidity for my savings,” he said.

A beautician identified only as Rachel said she is hesitant about the transfer due to confusion over the process.

“I am worried about making any changes to my EPF account and would rather leave it as it is.”

Rachel had previously withdrawn from Akaun Sejahtera to cover her housing loan instalments and prefers not to make further withdrawals.