EPF Account Restructuring Guide: Akaun Fleksibel, Sejahtera & Persaraan

The Employees Provident Fund (EPF) introduced a new account restructuring system in May 2024 to help members better manage both retirement savings and short-term financial needs.

Previously, EPF savings were divided into two accounts. Under the new structure, EPF members below 55 years old now have three accounts:

This initiative was introduced to strengthen retirement savings while also giving members more flexibility to access emergency funds when needed.

For many Malaysians, this restructuring provides a better balance between preparing for retirement and handling unexpected financial situations.

What Is the EPF Account Restructuring?

The EPF account restructuring aims to improve retirement security while helping members manage financial needs at different stages of life.

Starting from 11 May 2024, EPF accounts were reorganized into three separate accounts.

Image source: KWSP Article

The goal is simple:

Help members continue saving for retirement
Allow limited access to emergency funds
Support important life expenses before retirement

This approach gives members more flexibility without fully affecting their long-term retirement savings.

1. Akaun Persaraan

Previously known as Account 1, Akaun Persaraan focuses mainly on long-term retirement savings.

Most of your EPF contributions will go into this account to help you build financial security for retirement.

Savings in Akaun Persaraan are generally not meant for early withdrawals because the account is designed to protect your future retirement income.

This helps ensure members still have savings available when they stop working later in life.

2. Akaun Sejahtera

Previously known as Account 2, Akaun Sejahtera supports pre-retirement financial commitments and important life expenses.

Members can use savings from this account for approved purposes such as:

Housing
Education
Medical expenses
Insurance or takaful
Hajj expenses
Withdrawals at age 50

For example, many Malaysians use Akaun Sejahtera to help pay for a house deposit, education fees, or medical costs without fully touching their retirement savings.

This account provides flexibility while still encouraging long-term financial planning.

3. Akaun Fleksibel

Akaun Fleksibel, also known as Account 3, is the newest account introduced under the EPF restructuring exercise.

This account allows members to withdraw savings anytime for short-term or emergency financial needs, subject to EPF conditions.

For example, members may use Akaun Fleksibel during:

Emergency medical situations
Temporary job loss
Urgent family expenses
Unexpected financial commitments

The introduction of Akaun Fleksibel gives Malaysians easier access to emergency funds without needing special withdrawal schemes.

However, EPF still encourages members to withdraw responsibly to avoid affecting their long-term retirement savings.

New EPF Contribution Distribution

Under the new structure, monthly EPF contributions are distributed as follows:

75% → Akaun Persaraan
15% → Akaun Sejahtera
10% → Akaun Fleksibel

This distribution applies to EPF members below 55 years old, including non-Malaysian contributors.

Members aged 55 and above are not affected and will continue using their existing EPF account structure.

This new contribution structure ensures most savings still remain focused on retirement while setting aside a smaller portion for flexible withdrawals.

What Happens to Existing EPF Savings?

When the restructuring started:

Existing Account 1 savings were automatically transferred into Akaun Persaraan
Existing Account 2 savings were transferred into Akaun Sejahtera
Akaun Fleksibel started with a RM0 balance

Savings in Akaun Fleksibel can increase through:

New monthly EPF contributions
Initial transfer options from Akaun Sejahtera

Members did not need to manually move their existing EPF savings because the restructuring process was handled automatically by EPF.

Understanding Akaun Fleksibel Withdrawals

Akaun Fleksibel was introduced to help members access emergency savings more easily.

Members can withdraw money from Akaun Fleksibel anytime if they meet these conditions:

Below 55 years old
Have available savings in Akaun Fleksibel
Minimum withdrawal amount is RM50

Withdrawals can be made through:

KWSP i-Akaun app
i-Akaun web portal
EPF offices

According to EPF, approved withdrawals are generally credited into members’ bank accounts within a few working days.

The flexibility offered by Akaun Fleksibel can help members handle urgent situations without depending entirely on loans or credit cards.

Initial Transfer to Akaun Fleksibel

EPF also introduced a one-time initial transfer option that allowed members to transfer part of their Akaun Sejahtera savings into Akaun Fleksibel.

This option was available from 12 May 2024 until 31 August 2024.

The amount transferred depended on the member’s Akaun Sejahtera balance.

If Savings Were Above RM3,000

For members with more than RM3,000 in Akaun Sejahtera:

10/30 transferred into Akaun Fleksibel
5/30 transferred into Akaun Persaraan
15/30 remained in Akaun Sejahtera

Image source: KWSP Article

If Savings Were Between RM1,000 and RM3,000

Members with balances above RM1,000 but below RM3,000 had:

RM1,000 transferred into Akaun Fleksibel
Remaining balance stayed in Akaun Sejahtera

Image source: KWSP Article

If Savings Were RM1,000 or Below

For balances RM1,000 and below:

The full amount was transferred into Akaun Fleksibel

No amount was transferred into Akaun Persaraan for balances below RM3,000.

Image source: KWSP Article

This structure was introduced to ensure members with lower balances could still access emergency savings when needed.

What If Members Did Not Choose the Initial Transfer?

Members who did not apply for the initial transfer kept their existing balances in:

Akaun Persaraan
Akaun Sejahtera

However, future monthly contributions still followed the new distribution:

75% into Akaun Persaraan
15% into Akaun Sejahtera
10% into Akaun Fleksibel

Image source: KWSP Article

This means members would still gradually build savings in Akaun Fleksibel over time even without making the initial transfer.

Can Savings Be Transferred Between EPF Accounts?

EPF members are allowed to transfer savings between certain accounts:

Akaun Fleksibel → Akaun Sejahtera
Akaun Fleksibel → Akaun Persaraan
Akaun Sejahtera → Akaun Persaraan

However:

Transfers cannot be reversed after completion
Transfers from Akaun Persaraan to other accounts are not allowed

This restriction exists because Akaun Persaraan is specifically designed to protect retirement savings for the future.

FAQs

Who is affected by the EPF account restructuring?

The restructuring affects all EPF members below 55 years old, including non-Malaysian contributors. Members aged 55 and above continue using their existing EPF account structure.

Can I withdraw money from Akaun Fleksibel anytime?

Yes. Members can withdraw savings from Akaun Fleksibel anytime as long as they meet the withdrawal conditions and have enough balance in the account.

What is the minimum withdrawal amount for Akaun Fleksibel?

The minimum withdrawal amount is RM50 per transaction.

Will my old EPF savings automatically move into the new accounts?

Yes. Existing Account 1 savings were automatically transferred into Akaun Persaraan, while Account 2 savings were moved into Akaun Sejahtera when the restructuring started.

Can savings in Akaun Persaraan be transferred to Akaun Fleksibel?

No. Transfers from Akaun Persaraan to Akaun Fleksibel or Akaun Sejahtera are not allowed because Akaun Persaraan is specifically reserved for retirement savings.

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