As all of us know, Employees Provident Funds (EPF) is meant for our retirement savings which helps us go through our golden years. However, statistic shows that most of the contributors opted for full withdrawals at age 55 and finished it all within a period of 10 years.
In addressing this issue and encouraging contributors to keep their savings longer, EPF has launched a campaign to promote awareness on their "Flexible Age 55 Withdrawal Scheme". How flexible is it? If you're one of the to-be-retiree, then this post more than relevant to you. Read on and share this with other contributors if you think that this might be useful for them.
How does "EPF Flexible Age 55 Withdrawal Scheme" works?
By opting the scheme, contributors could withdraw part of their savings at any one time or make monthly withdrawals or a combination of both options. This is how flexible it is where you can vary the frequency and withdrawal amount anytime. In other words, withdraw only when you need it, otherwise, just left it with EPF to continue accumulate with compounding dividends for a longer period.
To elaborate further, the eligible combination withdrawal method are as follows:
- Withdrawal of a partial amount of your savings & retain the balance in your EPF account
- Withdrawal of a partial amount of your savings & transfer the balance for monthly payments
- Withdrawal of a partial amount of your savings & transfer a partial amount for monthly payments while maintaining the balance in your EPF account;
- Transfer your entire savings amount for monthly payments.
Members can submit the application within 6 months before age 55, according to the date of birth. However, payment will be made within 5 working days after reaching the age of 55.
Withdrawal Amount Eligibility
Minimum withdrawal amount for partial withdrawal is Rm2,000. Meanwhile, let's have a look at Monthly Payment Withdrawal as below:
- You may choose monthly payments with the minimum amount of RM250.00 per month for a minimum period of 12 months.
- The minimum amount that can be transferred as monthly payments is RM3,000.00.
- You need to determine the total monthly payment amount, the amount per month, the number of months and the payment commencement month.
- The EPF will transfer the total withdrawn amount into a special account. Crediting will be made into your bank account every month according to the amount and number of months applied.
- Payments will be made on the 25th of every month.
- The number of months for the monthly payments do not go beyond your age of 75 years.
- You may cancel this withdrawal any time.
Is it very troublesome?
In order to opt for the said withdrawals, you would need to prepare the following documents only:
- For payment via direct crediting to member’s bank account:
- Bank passbook or Saving/Current account statement
- Owns an account with the panel bank appointed by EPF
- The bank account must still be active
- Your identification number matches with the bank’s record
- Payment is made in Ringgit Malaysia
- Otherwise, payment will be made via banker’s cheque
Should you have any enquiry or require additional information regarding this withdrawal, kindly contact:
- Any EPF Office nearest to you;
- The EPF Call Management Centre (CMC) at: 03-8922 6000
- Customer Feedback: http://enquiry.kwsp.gov.my
Source: EPF website