Not many keen on using EPF Account 3

Some Employee’s Provident Fund (EPF) members below 55 have no plans to utilise the newly introduced Account 3, known as Akaun Fleksible.

Hizrian says he is sticking to EPF Account 1 and 2.Senior marketing executive Hizrian Chaming said he would continue with the existing EPF Account 1, renamed Akaun Persaraan and Account 2, Akaun Sejahtera.

“I do not see any urgency in having EPF Account 3,” he told StarMetro.

Hizrian said members should be given the option of whether they want the new account or otherwise.

“We should be able to decide whether we want to have two or three accounts.

“The government should not have imposed the ruling that all members aged below 55 should have three accounts,” he said.

Nurul Fatin worries about the flexibility of EPF withdrawal.Concierge Nurul Fatin Muhammad Bukhri said her parents had advised her not to utilise Account 3.

“Having the flexibility to withdraw money anytime from Account 3 is not a good idea,” she said, adding that members might want to withdraw their funds to resolve their financial problems.

However, if not strictly monitored, it could lead to abuses, Nurul Fatin said.

“The money in EPF is our retirement fund and if members continue to withdraw from it, they would end up using their savings well before retirement,” she added.

Building manager S. Kannan described the introduction of Account 3 as a bad idea as it defeated EPF’s objective of safeguarding members’ retirement funds.

Kannan says the introduction of Account 3 is not a good idea.“EPF should look at ways to further strengthen the dividend payouts for Accounts 1 and 2 instead,” he said.

Kannan added it was disturbing that many Malaysians did not have sufficient retirement savings by 55.

He said parents should not depend on their children to look after them when they got older.

It was earlier reported that most Malaysians do not have enough savings for their retirement, with only 33% of active EPF members having basic savings of RM240,000 as of last year.

Credit administrative executive Ng Fong Lin said she wanted to focus on providing a good education for her children aged three, six and eight.

Ng says having good yearly dividends is important“Enjoying good yearly dividends from our EPF accounts is more important,” she said.

Ng added that even if EPF mandated all members aged below 55 must have three accounts, she would choose not to transfer money to Account 3.

Under a restructuring plan which took effect on May 11, EPF accounts are split from two to three for members aged below 55.

EPF Account 3 gives members below the age of 55 access to funds for short-term financial needs.