Since 2024, EPF has restructured into three accounts: Account Retirement (formerly Account 1), Account Sejahtera (formerly Account 2), and the new Account Flexible (Account 3). Understanding this structure is crucial for managing your retirement savings effectively.
EPF Three Account Structure (2024 Onwards)
| Account | Allocation (%) | Purpose | Withdrawal Rules |
|---|---|---|---|
| Account Retirement (formerly Acc 1) | 75% | Retirement savings | Only at age 55 or special circumstances |
| Account Sejahtera (formerly Acc 2) | 15% | Pre-retirement needs | Housing, education, medical, age 50 |
| Account Flexible (Acc 3) | 10% | Short-term needs | Anytime (quarterly) |
Account Sejahtera Withdrawal Purposes
Account Sejahtera (15%) can be used for: Housing: down payment, monthly instalment top-up, full settlement. Education: own tertiary education, children's education. Medical: critical illness, hospitalisation. Retirement at age 50: partial lump sum withdrawal.
Voluntary Contribution to EPF
Members can make voluntary contributions (i-Saraan for self-employed, i-Suri for housewives) to EPF to earn the same dividend rates. i-Suri contributions are topped up by the government by RM480/year. These contributions go to Account Retirement and earn full dividends.
Should You Withdraw Account 3?
Only withdraw if you have no other emergency fund. RM10,000 in Account 3 at 5.5% over 20 years grows to RM29,000. Withdrawing it costs you that RM19,000 gain. Use it as a true last resort, not a regular supplement.
Project your EPF retirement savings with our ๐ฏ Retirement Calculator.
Our editorial team specialises in Malaysian personal finance โ covering loans, taxation, insurance, EPF, and Islamic finance. Every article is fact-checked against Bank Negara Malaysia (BNM), LHDN, and major Malaysian bank publications. We reference our calculators (which use industry-standard formulas) to ensure consistency between our written content and tools. Learn more about our methodology โ