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.