EPF approves 37% more application for Flexible Age 55 Withdrawal

PETALING JAYA: The Employees Provident Fund (EPF) said it approved a total of 77,865 applications for Flexible Age 55 Withdrawal in the first quarter of this year (Q1'15), an increase of 37.37% compared with 56,681 approved applications a year ago.
"The amount withdrawn under the Flexible Withdrawal facility amounted to RM2.68 billion as opposed to RM1.88 billion in Q1 2014," it said in a statement yesterday.
"The increasing number of applications for flexible withdrawals reflects more members at age 55 opting to stretch their savings longer with the EPF," said its CEO Datuk Shahril Ridza Ridzuan.
He added that this signified members' growing awareness that lump sum withdrawals will likely result in insufficient income to support their retirement life.
In 1Q'15, the pension fund also approved 133,351 applications for members participating in the EPF Members' Investment Scheme (EPF-MIS), a 56.65% increase from 85,129 applications in 1Q'14.
The scheme allows its members to transfer part of their savings in Account 1 for investments in approved unit trust funds through fund management institutions, and offering them the option to enhance their retirement savings.
As at Dec 31, 2014, the total number of trust funds approved under the EPF-MIS was 336, of which 230 funds were qualified to be offered.
EPF members, meanwhile, also rose 2.45% to 14.29 million in 1Q'15 from 13.95 million in 1Q'14.
"Out of the total, 6.69 million are active members who continue to contribute to their retirement savings.
During 1Q'15, a total of 20,463 new employers were registered, increasing the total number of employers to 535,380," it added.
According to the EPF, the usage of its online portal i-Akaun in 1Q'15 had grown by 102.65% to 2.91 million from 1.43 million a year ago.
"The significant increase in i-Akaun usage shows that more members are aware of the importance of monitoring their EPF savings and contributions from their employers.
This is important as they can also ensure that their employers contribute on their behalf accurately and on time," added Shahril.