11 Jul - 6 min read
While your Employee Provident Fund (EPF) savings are no doubt very important for retirement, there may be times in life when having access to a large amount of money may make it just as important to withdraw it earlier.
If you have considered withdrawing your EPF money for prior use before the age of 50, 55, or 60, here are some fast facts you should know to help you along.
Do you know just how many things you can withdraw your EPF for beyond retirement? There are actually a total of 15, which covers a wide range of situations.
There sure is a lot of reasons the EPF allows you to withdraw, simply because the situations above regularly requires a large sum of money upfront. For most Malaysians, there are several types of EPF withdrawals to highlight.
Although the exact procedure for each withdrawal and the documents required may be different, withdrawal of your EPF money is no longer an arduous process of days spent in the EPF office.
Check their website to find out just what you need to prepare and pay close attention to the terms of each withdrawal. The reason some withdrawals become multi-part sagas is because people go in without first knowing what is required of them. In the dawn of the internet, most information is available to you just a click or two away.
In fact, with the EPF i-Akaun, you can even request for a withdrawal online via e-Pengeluaran. Otherwise, you can head to the nearest EPF office or send it in via post with the necessary documentation. You can also do so by post, but we recommend going to the counter to avoid postal complications with your sensitive data!
For some of the most common withdrawals such as education and housing, you don’t even need to move from your computer. EPF has invested in the creation of web forms for your ease of use.
Check out the main page of listed forms and you’ll notice a bracketed indication of which withdrawal comes with a web form. It’s as simple as filling in the details online.
Once you’ve done that, EPF will credit the money within the stipulated 2 weeks.
Save for selected withdrawals that involve permanent, life changing events, such as the one for leaving the country for good, there is a cap to how much you can withdraw from EPF – and when.
For example, housing loan withdrawals are only allowed once a year and only from your Account 2 funds. This means that if you applied on, say, 16 April 2018, you cannot apply to withdraw again until 16 April 2019.
The amount is also limited to what you have in your Account 2 and subject to a minimum. These requirements may differ for each withdrawal so do check with EPF before taking the day off to head to the branch (yes, we speak from experience).
If you’re thinking of withdrawing, remember that EPF is important for your retirement and however much you can afford to leave in there will be helpful.
That said, it is also helpful to have a roof over your head in old age. If you’re now ready with withdrawal forms to buy the house of your dreams – you’ll need a good home loan to get you through. We’ve got a home loan calculator and home loan comparison list to find you the best one!
Have we missed anything? Let us know in the comments!