Transfer funds in Account 3 back to Account 2 and Account 1? – kopiandproperty.com
EPF News: Transfer funds in Account 3 back to Account 2 and Account 1?
When we retire, we really do need to have money to spend
Imagine retiring at 60 and we only have RM50,000 in our EPF savings. Assuming we are thrifty and spends just RM1,000 per month, this RM50,000 will be fully spent in just 4 years and 2 months. By then, we are only 64 years old. Meanwhile life expectancy of Malaysians is 74 years old or may be even higher. Where would be find money to sustain our food expenditure? I assume by then the home we stay is already fully paid, so we have one less worry.
EPF Account 3’s dividend rate is the same as Account 1 and Account 2 but EPF chief executive officer Ahmad Zulqarnain Onn said that while at present the dividends remained the same across all three accounts, this could change in the future. “This was because, by default, liquid assets do not attract higher interest rates or dividends.” Source: thestar.com.my In other words, in the future, there is a possibility that the dividend rate could be lower…
Can I transfer money from Account 3 back to Account 1 or 2?
Briefly, yes. However the way to do it would be to go to the nearest EPF office. Meanwhile there is also the potential online option to do so and that option would be coming soon.
Reported in soyacincau.com EPF Head of Policy and Strategy Department Balqais Yusoff said, “members can soon make a recurring request to transfer the funds from Account 3 to the two other accounts.”
She also shared that we can specifically choose whether you want the contributions that are meant for Account 3 to be moved to Account 1 (Akaun Persaraan) or Account 2 (Akaun Sejahtera). Not only that, you will also have the choice to split and transfer the money to both accounts. Source: soyacincau.com
How much do workers earn here in Malaysia?
Temptations are hard to resist; Account 3
As soon as we withdraw any amount today, we lose double that amount in the future yeah. Here’s the calculation: RM7 billion today is RM14 billion in the future. So if we are not able to resist the temptation, I think it’s best that we transfer that amount back into Account 1 or Account 2. Just spend what we have today versus spending our future money, today. Happy understanding that the power to spend or not to spend is in your hand.
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