Key Changes Made in EPF (2)

E. HOUSING LOAN MONTHLY INSTALMENT WITHDRAWAL

Objective:

• Help members to pay their housing loan installment.

A member may withdraw their Account 2 savings for this purpose whereupon payment will be credited directly into member’s bank account.

Note:

Changes introduced since 3 April 2006:

• Yearly withdrawal to reduce housing loan whereupon payment is made to members’ housing loan account.
• Spouses who are not joint – owners of property allowed to withdraw their savings from Account 2 to help reduce their spouses’ housing loan.

F. RESTRUCTURING MEMBER'S INVESTMENT CHOICE

Objective

• To allow members at various age levels to invest part of their savings to enhance their retirement savings.

Members may invest 20% of savings in excess of the ‘basic saving’ in Account 1 in approved investments through approved institutions.

Investments in approved institutions shall be deemed withdrawn when a member attains age 55 years, even if he/she has not made full withdrawal. (1September 2007).

Before 1 February 2008:

• Members can invest 20% of savings in excess of RM50,000 in Account 1 through approved External Fund Managers.
• Savings transferred for investments shall be returned to the EPF upon liquidation of investment if members had not withdrawn at age 55 years.

“BASIC SAVING”

Objective:

• A certain amount of savings in Account 1 at various pre-determined age so as to enable a member to accumulate a minimum savings of RM120,000 at age 55 years.

This amount would give a member a payment of RM500 a month for a period of 20 years (55 - 75 years).

This amount shall not be withdrawn before age 55 years.

This amount will be savings in cash with the EPF.

The quantum of basic savings will be reviewed every five years.







A member need to have the required amount of savings at the predetermined age levels. Amount in excess of the ‘basic sum’ can be invested in approved investments through approved Institutions.