The Employees Provident Fund (EPF) has launched a new account called Akaun Emas (Gold Account) for members working beyond the age of 55.
Described as a second retirement “nest egg”, contributions after 55 will automatically be parked under this account and can only be withdrawn when members turn 60.
The account will take effect January 1, 2017, and any outstanding balance from Accounts 1 and 2 will be consolidated under the single Akaun Emas.
According to the EPF, this ensures members have sufficient savings for retirement, adding that it would not affect existing schemes, where members have the option to make full or partial withdrawals upon turning 55 years old.
EPF chief Datuk Shahril Ridza Ridzuan said these improvements and enhancements are the result of the members’ consultation exercise that the fund conducted in April last year.
He added that EPF also extended the dividend payment limit to age 100 from the current 75.
Early this year, the pension fund revealed that one in three Malaysians do not have a savings account and most have not saved enough to last them more than five years upon retiring.
It said as of last year, 68% of EPF members aged 54 had savings of less than RM50,000.