EPF Account 3 Unveiled: Flexible Withdrawals and Financial Freedom

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In a significant development that could reshape financial planning for countless Malaysians, the Employees’ Provident Fund (EPF) is undergoing a major restructuring. This includes a rebranding of EPF Account 1 to Account Persaraan (Retirement Account), Account 2 to Account Sejahtera, and most intriguingly, the creation of the new Account 3, also known as the Flexible Account. Here’s what you need to know about these changes and how they might affect you.

Understanding the New EPF Account 3

According to reliable sources, the introduction of EPF Account 3 is set to be officially announced by the end of April, with operational changes kicking in from May 11. This new account structure will redefine how members aged below 55 allocate their contributions. Traditionally, contributions were divided with 70% going into Account 1 and 30% into Account 2. However, under the new system, 75% will be directed to Account 1, 15% to Account 2, and the remaining 10% to the newly established Account 3.

Opting In: Flexibility at Your Fingertips

One of the standout features of Account 3 is the flexibility it offers. Members will have the opportunity to transfer funds from Account Sejahtera to the Flexible Account through an opt-in mechanism. This window for opting in extends until August 31, 2024, allowing members plenty of time to decide if they want to take advantage of this new facility.


During the period from May to August, members can opt in for the initial amount, termed the accumulation phase. For those who decide not to opt in, their Account 3 balance will start from zero and will only grow with subsequent new contributions.

Immediate Access to Funds

Perhaps the most compelling aspect of Account 3 is the ease with which funds can be withdrawn. Members can withdraw their savings at any time, subject to a minimum withdrawal amount of RM50. This feature positions Account 3 more like a savings account, providing liquidity to meet unexpected financial needs without the usual constraints associated with traditional provident fund accounts.

Maintaining Dividend Yields

Concerns about potential changes to the dividend rates have been assuaged by EPF officials, who confirm that dividends are likely to remain consistent with previous years. This assurance is crucial for members who rely on these dividends for a significant part of their retirement planning.

Strategic Benefits for Financial Planning

The introduction of EPF Account 3 is not just about adding another account; it’s about providing more control and flexibility to members. This aligns with the broader goal of catering to varying financial needs throughout a member’s life, particularly in emergencies or unexpected situations.

This restructuring of EPF accounts represents a thoughtful approach to adapting financial services to better meet the evolving needs of Malaysians. It offers a blend of security and flexibility, allowing for a more personalized and responsive way to manage retirement savings. As we await further details from the EPF, it’s clear that these changes could provide a significant boost to financial planning strategies for many, enhancing the ability to respond dynamically to life’s uncertainties.

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