24th April 2026 - 6 min read
If you’re employed in Malaysia, a portion of your salary goes into EPF every month. But not everyone knows exactly where that money ends up. Since May 2024, EPF has split contributions across three accounts instead of two, and each one serves a different purpose. Understanding the difference can help you make better decisions about withdrawals, investments, and retirement planning.
EPF used to have a simple two-account structure: Account 1 for retirement and Account 2 for pre-retirement needs like housing and education. The split was 70% into Account 1 and 30% into Account 2.
That changed on 11 May 2024. EPF restructured the system into three accounts with new names and a new contribution ratio:
| Account | Purpose | Share of Contributions |
| Akaun Persaraan (formerly Account 1) | Long-term retirement savings | 75% |
| Akaun Sejahtera (formerly Account 2) | Medium-term needs | 15% |
| Akaun Fleksibel (new) | Short-term and emergency needs | 10% |
Say your total monthly EPF contribution (employee plus employer) is RM1,000. That means RM750 goes into Akaun Persaraan, RM150 into Akaun Sejahtera, and RM100 into Akaun Fleksibel.The biggest change is that Akaun Persaraan now receives a larger share than the old Account 1 did (75% versus 70%). Akaun Sejahtera, on the other hand, receives just half of what Account 2 used to get. The trade-off is the new Akaun Fleksibel, which gives you easy access to a portion of your savings whenever you need it.
Akaun Persaraan holds your long-term retirement savings. The money here is locked away until you turn 55, with very limited exceptions. You can invest a portion of it through EPF’s Members Investment Scheme (MIS), which lets you transfer some savings to approved fund management institutions. Otherwise, this money stays put and grows through annual dividends. EPF members can choose between two savings options: Simpanan Konvensional (the default) and Simpanan Shariah, which invests only in Shariah-compliant instruments. Both options apply across all three accounts, and you can switch to Simpanan Shariah through the KWSP i-Akaun app. You can cancel the switch before the effective date, but once it takes effect, the change is permanent.
For most of its history, EPF didn’t set specific savings targets for members. That changed in January 2026 with the Retirement Income Adequacy (RIA) Framework, which sets out three benchmarks: RM390,000 for basic retirement needs, RM650,000 for an adequate standard of living, and RM1.3 million for enhanced financial security. If your savings go above that RM1.3 million Enhanced Savings threshold, you can actually withdraw the excess before age 55. This limit is being phased in gradually, starting at RM1.1 million in 2026 and increasing by RM100,000 each year.
Akaun Sejahtera covers life’s bigger expenses before retirement. You can withdraw from this account for specific approved purposes: buying or building a home, paying for education (yours or your children’s), covering medical expenses, purchasing insurance or takaful protection, funding Hajj, and a partial withdrawal once you turn 50. Each type of withdrawal has its own conditions and documentation requirements, so it’s worth checking the specific rules on the EPF website before you apply. As of January 2026, the Hajj withdrawal limit has been increased from RM3,000 to RM10,000, and the requirement to verify your Tabung Haji balance before applying has been removed.
Akaun Fleksibel is the flexible one. You can withdraw from it at any time, for any reason, with a minimum withdrawal of RM50. No documents needed, no approval process to wait for. You apply through the KWSP i-Akaun app or at an EPF branch, and the money is credited to your bank account. All three accounts earn the same dividend rate, so there is no penalty for having money in your Akaun Fleksibel instead of the other two.
Yes, but it depends on the account. Akaun Persaraan is largely off-limits until age 55 (with limited exceptions like permanent disability, leaving the country permanently, or death). Akaun Sejahtera allows withdrawals for the approved purposes above. Akaun Fleksibel can be accessed at any time.
It is worth remembering that every ringgit you withdraw early is a ringgit that stops compounding. EPF declared a 6.15% dividend for 2025 (for both Simpanan Konvensional and Simpanan Shariah), with a total payout of RM79.6 billion. That rate is slightly lower than the 6.3% declared for 2024, but still above EPF’s five-year average of 5.88% for conventional savings.
In practical terms, RM5,000 withdrawn from your Akaun Fleksibel today, left untouched at 6% per year, would have grown to roughly RM16,000 over 20 years or RM28,700 over 30 years. That is almost six times the original amount, and it is money you will not have at retirement.
The restructuring was partly a response to what happened during COVID-19. Between 2020 and 2022, the government allowed several rounds of special EPF withdrawals (i-Sinar, i-Lestari, i-Citra) to help Malaysians cope with the financial impact of the pandemic. While those withdrawals provided short-term relief, they also depleted many members’ retirement savings.
EPF’s solution was to create a small, accessible pool of savings (Akaun Fleksibel) so members would have a built-in emergency buffer without needing to raid their retirement funds. At the same time, the larger allocation to Akaun Persaraan (75% instead of 70%) helps rebuild long-term retirement adequacy. The RIA Framework introduced in January 2026 takes this further by giving members concrete savings benchmarks, rather than just accumulating without a clear target.
EPF has also been broadening its coverage. Contributions became mandatory for foreign workers from October 2025, and new voluntary schemes like i-Saraan Plus (launched January 2026 for e-hailing and p-hailing drivers, with government matching of up to RM600 per year) aim to bring gig economy workers into the retirement savings net. The i-Suri programme for housewives and homemakers has also been extended, with eligibility now raised from age 55 to 60.
The easiest way to check your balances across all three accounts is through the KWSP i-Akaun app, available on both Android and iOS. Once you log in, your homepage shows the balance in each account separately. You can also download your annual EPF statement, which breaks down contributions, dividends, and withdrawals by account.
If you prefer not to use the app, you can log in through the i-Akaun web portal at kwsp.gov.my, call the EPF Contact Management Centre at 03-8922 6000, or visit any EPF branch with your MyKad.
Just because you can withdraw from Akaun Fleksibel doesn’t mean you should. Every ringgit left in there earns the same dividend as the rest of your EPF, and over time that adds up. If you can afford to leave it alone, it becomes extra retirement savings at no cost to you.
Topping up your contributions voluntarily is another option worth considering. Those extra savings get split across all three accounts, earn EPF dividends, and may qualify for tax relief. For more on how your EPF dividends are calculated and what they mean for your retirement, read our breakdown of EPF’s 6.15% dividend for 2025.
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As a creative content writer, Eloise has covered finance, business, lifestyle topics, and even moonlights as a singer-songwriter outside of RinggitPlus. Her current interests are learning the best ways to optimise spending and credit card hacks to gain more airline miles.
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