EPF Account 3 for urgent situations, say members

WHILE grateful at having the Employees Provident Fund’s (EPF) Flexible Account, members say they rather keep the money than use it.

Electrical store manager Jenny Chin said although only 10% of the total contributions were allocated to Account 3, it will definitely grow in the future.

“The most important thing for private sector workers like us is to see our savings in EPF growing over time,” she said.

Chin wants her money in EPF to grow and hopes for better dividen payout in years to come.

Chin, 41, said she had withdrawn RM700 from Account 3 earlier this year for Chinese New Year and vowed not to withdraw anymore from the account.

She hopes to retire comfortably 14 years from now.

“Hopefully, the EPF will be able to maintain the 6.30% dividend payout like what it did for 2024 or even better in years to come,” added Chin.

Authority liaison executive Ahmad Liwauddin Mardi, 37, said he would not make any more withdrawals from Account 3, unless for emergencies.

Ahmad says he will only withdraw from Account 3 if the need arises.

“I have already withdrawn from the account when it was introduced in May 2024, to buy some household items,” he said.

Ahmad said while the Flexible Account was really helpful in time of need, he would be more careful in the future and only withdraw savings from the account when the need arose.

“My priority is to ensure the amount of money in my Account 1 and Account 2 is sufficient for me to retire with peace of mind, without having to worry about financial problems,” he said.

M. Muthu Kumaran said any withdrawal he makes from Account 3 in the future would only be for investment purposes.

Muthu Kumaran says any withdrawal he makes from Account 3 will be for investments.

“I want my money to grow, and mutual funds are the best options as they give good returns to investors,” he said.

However the 49-year-old resident engineer said it was up to individual EPF members whether they wanted to grow their money by investing elsewhere.

“The money is ours and only we can decide what is good for us,” said Muthu Kumaran, adding that he did withdraw RM1,000 from Account 3 in 2024.

The EPF allocates 75% of contributions to Account 1, 15% to Account 2 and 10% to Account 3.

These accounts are now known as Akaun Persaraan, Akaun Sejahtera and Akaun Fleksibel respectively.

Savings in the Flexible Account can be withdrawn any time, subject to terms and conditions, though members are encouraged to withdraw it only for emergencies.