EPF Account 3: Malaysians in two minds over fund transfer opt-in

PETALING JAYA: The Employees Provident Fund’s (EPF) introduction of Account 3 has divided many over the new financial decision they have to make in the coming months.

In a poll by The Star, nearly 6,000 respondents pondered whether to transfer or not to transfer funds to Account 3.

Between May 11 and August 31, members will have a one-time option to transfer part of the savings balance in their Akaun Sejahtera (previously Account 2) as an initial amount to the new Akaun Fleksibel (Account 3).

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If the member does not choose to opt-in for an initial amount, no transfer will be made and the existing balance will remain in Akaun Sejahtera.

Now, back to The Star’s poll results.

Over 2,500 people - making up a slight majority of 45.36% of respondents - said they would not opt in for said fund transfer.

On the other side of the scale, over 2,400 people - 43.02% of poll-takers - said they would opt in for the fund transfer.

Only slightly over 10% of respondents were undecided.

In the feedback section, some lamented that they were over 55 years of age and not eligible for Akaun Fleksibel.

According to the EPF’s frequently asked questions section on its site, for members who have reached the age of 55, all remaining savings in all three accounts will be transferred to Akaun 55. New contributions after the age of 55 will be credited into Akaun Emas.

One respondent, who appeared to be a job-seeker or a worried observer of unemployment rates, commented: “...what matters now is getting employed! Otherwise, it doesn't make a difference.”

Another suggested going beyond Account 2 when it comes to sources for fund transfers to Akaun Fleksibel: “Opt in from balance in account 1.”

Others were concerned about the dividend rates, stating that it would affect their decision to opt-in or otherwise: “If same dividend rate. Yes.”

POLL: Have your say - will you opt in to the one-time fund transfer option to Account 3?