Financial maturity vital with introduction of Account 3

Big change: The EPF office in Kuala Lumpur. Experts say the provident fund will likely have to hold more liquid assets to meet possible withdrawals following the creation of the new account. — Bernama

ACCOUNT 3, known as the Flexible Account for members below the age of 55, is one the biggest changes the Employees Provident Fund (EPF) has implemented in recent times

In 2007, the EPF split the savings account to Account 1 and Account 2 with the monthly contribution proportion divided to 70% and 30%, respectively. Back then, Account 2 was introduced to allow limited withdrawals for its members for such needs as the first property downpayment or settlement of a housing loan, financing education and medical expenses.