63% of EPF members left Akaun Fleksibel untouched, says report

 However, nearly 37% of 13.3 million eligible members have tapped into the facility, collectively withdrawing RM16.6 billion.

EPF members were given a one-time option to transfer funds from Akaun Sejahtera to Akaun Fleksibel between May 11 and Aug 31, 2024, based on their account balances.

PETALING JAYA:

 Most EPF members under the age of 55 had not tapped into their Akaun Fleksibel as of October 2025, according to the pension fund’s latest research report.

The report, “Enduring Today, Shaping Tomorrow: Akaun Fleksibel as a Financial Lifeline for Wellbeing”, indicated that 63% of the 13.3 million eligible members made no withdrawals. This translates to about 8.38 million members.

However, nearly five million members, or about 37%, made at least one withdrawal between May 2024 and October 2025, withdrawing a combined total of RM16.6 billion.

“Among non-withdrawers, nearly half, or 44%, had sufficient balances but did not make a withdrawal, while the remainder, or 56%, were unable to withdraw due to insufficient balances,” EPF said.

Launched in May 2024 as part of EPF’s restructuring exercise, Akaun Fleksibel allows members to withdraw savings at any time, subject to the available balance.

Contributions are split into three accounts: 75% into Akaun Persaraan, 15% into Akaun Sejahtera, and 10% into Akaun Fleksibel for flexible withdrawals.

Members were also given a one-time option to transfer funds from Akaun Sejahtera between May 11 and Aug 31, 2024, based on their account balances.

During this period, 4.1 million members transferred RM14.5 billion into Akaun Fleksibel, with 88.1% making at least one withdrawal by October 2025. The remaining 11.9% made no withdrawals, leaving about RM2.5 billion untouched.

By October 2025, 80.9% of withdrawers had less than RM500 left in their Akaun Fleksibel, while 6.2% had fully depleted their balances.

Only 4.4% retained more than RM2,000, underscoring the account’s role as a short-term liquidity buffer rather than a savings pool.

Income shapes withdrawal patterns

Contributors earning below RM3,000 per month made up the largest share of withdrawers at 51.1%, but typically withdrew smaller amounts due to “immediate liquidity needs and limited savings balances”, according to EPF.

In contrast, higher-income contributors earning RM10,000 and above made up only about 4% of those who withdrew funds, but contributed 17.7% of total withdrawal value.

Withdrawals largely for essentials

EPF also surveyed 14,204 members who withdrew from Akaun Fleksibel between May 2024 and June 2025 and found that withdrawals were largely used for essential needs.

About 93% said the funds were used for daily necessities, 81.7% for emergencies, 74.4% for debt and investment obligations, and 73.3% for seasonal or lifestyle spending.

Food and daily essentials topped the list at 70.3%, including groceries, infant formula and diapers. Health-related expenses accounted for 58.7%, while debt repayment made up 56.6%.

Only 18.3% reported using funds for lifestyle purposes, suggesting that discretionary spending was limited. - FMT