With the recent major overhaul of EPF accounts, many members are now familiar with the new Akaun Persaraan, Akaun Sejahtera, and Akaun Fleksibel. This new structure provides more flexibility during your working years, but it also raises an important question: what happens to these new accounts as you approach retirement age?

For members choosing to work beyond age 55, understanding how this new system connects with the established rules for later-life savings is more crucial than ever. This guide explains the role of Akaun Emas and how it safeguards the final stretch of your retirement contributions.

Understanding the Shift at Age 55

The first major milestone in your EPF retirement journey is your 55th birthday. At this point, the EPF system automatically consolidates all the savings from your Akaun Persaraan, Akaun Sejahtera, and Akaun Fleksibel into a single, unified account called Akaun 55. From this moment on, you have the flexibility to make full or partial withdrawals from your Akaun 55 at any time.

However, if you continue to be employed, any new contributions made by you and your employer will not go into this accessible Akaun 55. Instead, they are channelled directly into your Akaun Emas.

What Exactly is Akaun Emas?

Akaun Emas is a second, separate retirement fund specifically for members who continue to work between the ages of 55 and 60. Its primary purpose is to ensure you build a dedicated pool of savings to cover your later retirement years, from age 60 onwards.

The key feature of Akaun Emas is that these funds are locked until you reach age 60. This might seem restrictive, but it serves a vital purpose. By preserving these final contributions, the EPF helps members accumulate a more substantial fund, providing greater financial security when they fully stop working.

How Will Your Savings Continue to Grow?

Just like your other EPF accounts, the savings in both your accessible Akaun 55 and your locked Akaun Emas will continue to earn annual dividends. This means even though you can’t touch your Akaun Emas funds for five years, your money is still working hard for you, benefiting from the power of compounding. This five-year period of continued contributions can make a significant difference to your total retirement savings.

Reaching the Finish Line: Withdrawal at Age 60

Once you celebrate your 60th birthday, your financial flexibility expands again. At this stage, all the savings held in your Akaun Emas are combined with any remaining balance in your Akaun 55. You are then free to withdraw the entire consolidated amount or make partial withdrawals as you see fit.

This structure provides a balanced approach that remains relevant today. It gives you access to your primary lifelong savings at age 55 while protecting and growing the contributions you make in the last few years of your career. So, if you’re planning to stay in the workforce after 55, you can be confident that your continued contributions are being safely managed in your Akaun Emas, setting you up for a more secure retirement in today’s landscape.

• TAGS:
• Akaun Emas
• Employees Provident Fund
• EPF
• Retirement
• Retirement Fund
• Savings