KUALA LUMPUR: As stated in the Employees Provident Fund website, upon reaching 55 years old, contributions from members to Account 1 and Account 2 will be consolidated into Account 55.
One can withdraw all or part of the savings from this account at any time.
Should one choose to continue working after 55, all further contributions will be credited to Akaun Emas, to be withdrawn only upon reaching 60.
The website lists the different categories for full withdrawal, partial withdrawal, monthly payment withdrawal, combination of partial and monthly payment withdrawal, automatic dividend payment, and payment withdrawals to the appointed fund management institutions.
EPF statistics show that 70 per cent of contributors who withdraw funds at 55 often use up their savings less than 10 years after retiring.
But in recent years, there has been an increasing trend for contributors not to withdraw their savings at one go.
Last year, Ringgitplus Malaysia, a financial comparison website, conducted a financial literacy survey and found that 21 per cent of Malaysians didn't save money at all. Of this lot, 11.9 per cent didn't save or said they spent a lot on lifestyle, including shopping and entertainment.
Another 33.7 per cent said their debt repayments rendered them unable to save, followed by 29.2 per cent who believed their essential expenses were too high, leaving them with too little to save, while the remaining 25.2 per cent saved only when there was enough at the end of the month.
The survey said 35 per cent kept less than RM500 a month, 23 per cent saved RM501 to RM1,000, 13 per cent (RM1,001 to RM2,000), while close to nine per cent said they could set aside more than RM2,000 a month.