Good decision by EPF to give flexibility to members regarding Account 3


KUALA LUMPUR: The Employees Provident Fund’s (EPF) decision to allow its members the option to move their contribution in Account 3 to Account 1 or 2 or both is welcomed, say financial experts.

Hijrah Wealth Management Sdn Bhd founder and principal consultant Rohani Mohd Shahir said a reform to meet the request of some members might not be suitable for everyone, especially in the context of Account 3.

“If a member decides not to utilise Account 3, they will not have an option of withdrawing retirement savings from that account in the event of an emergency.

“Those who choose this option should have alternative emergency funds or already be practising monthly savings apart from EPF savings,” she told Bernama.

Rohani said Account 3 is advantageous for contributors to withdraw funds for emergencies without resorting to other avenues such as loan sharks or burdensome loans. However, she said members must have the discipline not to misuse this facility for other purposes other than emergencies as that would be detrimental to their future retirement needs.

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

EPF , Employees Provident Fund , Account 3

   

Next In Business News

Bank of England cuts rates but sees higher inflation after Reeves' budget
Tengku Zafrul: Malaysia secures potential exports to China worth RM3.2bil
Malaysia ready for new investment era with clear economic vision - MoF
Microlink wins RM83.5mil project from Home Affairs Ministry
Ringgit marginally lower against US dollar at the close
TWL Holdings secures RM42.5mil banking facility from UOB Malaysia
Ekovest's Lim is said to consider sale of toll roads for RM5bil
Sunway Malls projects 5% growth for 2024
Pentamaster 3Q net profit halves to RM11.8mil
Metro Healthcare’s 156.63 mln IPO shares for public oversubscribed by 38.60 times

Others Also Read