PETALING JAYA: While it was launched on Jan 1, 2017, not many of the 8.4 million active Employees Provident Fund (EPF) contributors are aware that their contributions after the age of 55 are transferred to “Akaun Emas”, and withdrawals are forbidden until they reach the age of 60.
An EPF spokesman said Akaun Emas serves to ensure that contributors have a second retirement nest egg in their senior years.
While unable to say how much of contributors’ savings are held in Akaun Emas, he said: “Members need not worry as they have the option to make full or partial withdrawals from their original EPF accounts upon reaching 55 years.
“The balance of the money in their accounts 1 and 2 will be transferred to “Akaun 55” upon reaching this age (55 years).
“Akaun 55 will remain open as long as a contributor lives or until he reaches 100 years old. It will only close after he has withdrawn all his savings from it.
“But their savings in Akaun Emas can only be withdrawn once they reach 60 years. This was decided upon to ensure those who reach 60 years have some funds to withdraw from as they may have medical or other expenses at that age.”
The spokesman stressed that contributors will continue to receive dividends for both Akaun 55 and Akaun Emas.
“Also, those who have participated in the Members Investment Scheme can withdraw their unit trust savings at any time through EPF’s I-invest. The withdrawal will not go to the member but will be returned to his EPF savings.
“This money will only be accessible once members reach 55 years. A contributor can use I-invest to save in unit trusts or make a withdrawal at any time.”
The spokesman urged contributors who have queries about their savings to contact EPF or visit any of their branches to get further clarification.
Universiti Tun Abdul Razak economist Prof Emeritus Dr Barjoyai Bardai said Akaun Emas is a form of forced savings for those who want to work after 55, and is a very good idea.
He said many of those in the lower income group have limited EPF savings after making four withdrawals during the Covid-19 pandemic.
“Akaun Emas will ensure they have some kind of savings after they reach 60 and provides them with some kind of lifeline.
“This is very important as the lower income group will have some breathing space to decide what they want to do after reaching 60 years.”
Early this year, EPF revealed that as of last year, a worrying 51.5% or 6.67 million members under the age of 55 had savings below RM10,000. And some two million of them are in the 40 to 54 years age group.
Also, it pointed out that 2.64 million members of 4.81 million in that same 40 to 54 age group are inactive as they did not make any contribution for the past few years.
Barjoyai said it is very clear that those in the lower income group need help for their retirement, even with the existence of Akaun Emas, but added that the idea of a higher EPF dividend just for the B40 group would be discriminatory.
He said the only way forward is forced savings and providing them with loans to top up their EPF accounts.
This must be paid back at 60 years before they are allowed to withdraw their savings.
Barjoyai said it would be up to individuals to decide whether they want to work after 60 years and make EPF contributions, as doing so will provide them with some relief in the long term once they are fully retired.
Barjoyai says Akaun Emas is a form of forced savings for those who want to work after 55, and is a very good idea. – HAFIZ SOHAIMI/theSun
