No difference in annual dividends
partial withdrawals upon reaching age 55,” EPF CEO Datuk Shahril Ridza Ridzuan ( pix) told a press conference here yesterday.
Upon reaching 60, funds in Akaun Emas and any balance in Akaun 55 will be combined for withdrawal.
There will be no difference in the annual dividend payout percentage between the accounts.
Shahril Ridza said the initiative would allow its members to accumulate more retirement savings upon reaching age 60.
“The extra savings accumulated during this five-year period will go a long way in serving members’ needs when they retire,” he added.
Shahril Ridza stressed that there will be no changes to the current age 55 withdrawal despite the introduction of Akaun Emas.
EPF also announced the extension of dividend payment limit to age 100 from the current 75, which will benefit members who choose to maintain a portion of their savings with EPF.
EPF has 255,900 active members aged 55 to 60 with total savings of RM31.6 billion as of Sept 30.
Other enhancement initiatives introduced by EPF include an increase in the basic savings quantum, changes to the nomination policies, preretirement withdrawals for nonMalaysian members and enhancements of policy administration.
Shahril Ridza said the basic savings quantum, a guide for members to track the recommended minimum retirement savings by age, has been increased from RM196,800 to RM228,000 at age 55, in line with the revised minimum pension for public sector employees.
Meanwhile, eligibility to participate in the EPF Member Investment Scheme has been increased from 20% to 30% of savings in excess of the basic savings quantum by age in EPF Account 1.
According to EPF, 62% of its active members do not achieve the basic savings quantum, mainly due to low salary, low contribution rates pre-1995, pre-retirement withdrawals that do not build assets, early retirement and members’ spending and lifestyle.