BFM 89.9

Podcast  >  Enterprise  >  Enterprise Explores  >  EPF Akaun Fleksibel: The Good, The Bad, and The Complicated

EPF Akaun Fleksibel: The Good, The Bad, and The Complicated

Dr Geoffrey Williams, Economist

29-Apr-24 12:00

EPF Akaun Fleksibel: The Good, The Bad, and The Complicated

EPF Akaun Fleksibel - only ‘break in case of emergencies’.

Last week (25 April 2024), the Employee Provident Fund (EPF) announced a restructuring, which, among other things, will see the introduction of a third account known as Akaun Fleksibel effective May 11th. We speak with Economist Dr Geoffrey Williams to dissect what this potentially means for EPF members, for the economy, and the retirement crisis.

Among other things, we explore how Account 1 (now Akaun Persaraan) has been moved up from 70% to 75% of contributions, how material a move this is by the EPF, the potential stimulus effect, EPF’s limits on addressing the retirement crisis and what else the government can explore, and much more.

More info about the restructuring:

Account Restructuring:

Member accounts will be restructured from the current two accounts (Account 1 and Account 2) to three accounts:

  • Akaun Persaraan: This account will accumulate savings specifically for retirement income.

  • Akaun Sejahtera: Designed to address members’ life cycle needs during retirement.

  • Akaun Fleksibel: A new account that provides flexibility for short-term financial needs. Savings in this account can be withdrawn as needed.

Allocation of Contributions:

Starting from 11 May 2024, contributions will be allocated as follows:

  • 75% into Akaun Persaraan.

  • 15% into Akaun Sejahtera.

  • 10% into Akaun Fleksibel.

Transfer Option:

  • Between 11 May 2024 and 31 August 2024, members can transfer part of their savings balance to Akaun Fleksibel as an initial amount.

  • If no transfer is chosen, the existing balance will remain in Akaun Sejahtera.

Access to the System:

  • Members can fully access the new system starting from 12 May 2024.

Produced by: Roshan Kanesan, Carol Wong

Presented by: Roshan Kanesan

This and more than 60,000 other podcasts in your hand. Download the all new BFM mobile app.

Categories:  financial wellnessmanagingeconomy

Tags:  epf restructurepersonal financeretirement savingsfinancial literacy

Play / Pause

Listen now : BFM 89.9 -- The Business Station

Today’s Shows

6:00 AM

The 6AM Stretch

7:00 AM

World Market Watch

7:15 AM

Morning Brief

7:30 AM

Morning Brief

7:45 AM

Top Story

8:00 AM

The Breakfast Grille

8:30 AM

Morning Brief

8:45 AM

Morning Brief

9:00 AM

Opening Bell

9:15 AM

Opening Bell

9:35 AM

People, Planet, Profit

10:05 AM

Open For Business

Jeremy Dev, Founder, Far Post Academy

11:00 AM

Marketing Mojo

Mario Braz de Matos, Flying Fish Lab

12:00 PM

Enterprise Explores

Dale Hardcastle, Global Head of Carbon Markets; and Shazrul Asari, Partner, Bain & Company

1:00 PM

The Breakfast Grille Repeat

Jazreel Goh, Country Director of British Council Malaysia

2:05 PM

Discovery Hour

3:05 PM

Beyond the Ballot Box

4:05 PM

Health & Living

5:00 PM

Top 5 at 5

6:00 PM

Inside Story

Talkback Tuesday

7:30 PM

Earth Matters [REPEAT]

9:00 PM

Bar None