At age 55, EPF members can make a full withdrawal from Account Retirement (formerly Account 1). This is one of the most significant financial decisions you will make โ lump sum vs annuity-style monthly withdrawals has long-term consequences. Here is the complete guide.
EPF Withdrawal Options at Age 55
| Option | Description | Best For |
|---|---|---|
| Full Lump Sum | Withdraw entire EPF balance | Those with clear investment plan |
| Partial Withdrawal | Take some, leave rest earning dividends | Phased retirement |
| Leave in EPF | Continue earning 5.5% dividend | Those continuing work or wanting EPF safety |
| EPF Monthly Withdrawal | Set up regular withdrawals | Income replacement |
Tax on EPF Withdrawal
EPF withdrawals are fully tax-exempt for Malaysian citizens in all circumstances. No withholding tax, no income tax on the withdrawal amount. This makes EPF one of the most tax-efficient retirement vehicles available anywhere in the world.
EPF Members Investment Scheme at 55
After age 55, you can still invest EPF balance in approved unit trust funds through i-Invest. Alternatively, you can transfer a portion to EPF-approved annuity plans or Akaun Emas (for those over 55 who continue working).
Account Sejahtera Withdrawal at Age 50
At age 50, members can make a partial lump sum withdrawal from Account Sejahtera (formerly Account 2) โ you can withdraw all or part. This is separate from the age-55 Account Retirement withdrawal and provides an earlier liquidity option.
Plan your EPF withdrawal strategy 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