EPF's Flexible Account: Opt-In for the Account 2 One-Off Irreversible Transfer?

Should you opt-in for the one-off irreversible transfer to the new Flexible Account from EPF Account 2 and effectively restructure your current EPF savings? That’s a key question that Enterprise Explores with Rajen Devadason, Licensed Financial Planner with Manulife Investment Management (Malaysia) Berhad. On top of that we also dive into how EPF members should navigate this incoming change and the narrative that we need to build around Akaun Fleksibel and its uses.

It’s no secret that EPF’s recently announced restructuring has been divisive to say the least, but love it or hate it, it’s coming later this week. Starting from Saturday May 11th 2024, EPF contributions will be split into 3 accounts, where 75% goes to Akaun Persaraan, 15% into Akaun Sejahtera, and 10% into Akaun Fleksibel.

More importantly, EPF members will have until August 31st to make a big decision - whether to opt-in to restructure your existing balance and transfer an initial amount into your Flexible Account. This one-off, initial transfer will be irreversible. Effectively, if you’ve never withdrawn funds from EPF, this move should restructure your EPF savings to follow the new 75:15:10 ratio.