For Chinese citizens contributing to the Employees Provident Fund (EPF) in Malaysia, questions about withdrawing their funds often arise. Let’s explore the key issues regarding KWSP/EPF withdrawals that you may have. Additionally, I recommend the Wise international remittance tool, which supports over 40 currencies with a Wise account and Wise card, making cross-border transactions and remittances to your loved ones in Malaysia easy and fair, with no hidden fees, always at the mid-market rate.
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What is Malaysian EPF?
The Employees Provident Fund (EPF), known in Malay as Kumpulan Wang Simpanan Pekerja (KWSP), is one of the oldest provident funds globally, established in 1951. According to the EPF Act of 1991, it aims to assist Malaysian workers in saving for retirement, enhancing their quality of life, and contributing to national infrastructure development while safeguarding and growing members’ retirement savings.
Things You Need to Know About KWSP/EPF Applications
What is the Difference Between EPF Account 1 and Account 2?
EPF members’ accounts are divided into two types: Account 1 (70% of contributions) and Account 2 (30% of contributions).
What Age Can You Withdraw EPF?
Members officially reach retirement age at 55. After years of contributions, you can choose how to manage your retirement fund, either through full or flexible withdrawals.
Upon reaching 55, contributions from Accounts 1 and 2 merge into Account 55. You can withdraw all or part of your savings from this account at any time. If you choose to continue working, further contributions will be deposited into the Akaun Emas account, accessible only at age 60.
For those delaying retirement, the 60-year withdrawal option allows for complete access to accumulated savings in both Akaun 55 and Akaun Emas.
Can EPF Funds Be Withdrawn Completely?
The answer is yes, under specific conditions, including reaching age 55 or 60, qualifying as a pensionable public service member, becoming incapacitated, leaving the country, or upon death. Below, we will outline all the conditions for EPF withdrawals and how to apply for each.
1. Full Withdrawal of EPF/KWSP: 6 Reasons for Application
| # | Type | Conditions | Withdrawal Method | |
|---|---|---|---|---|
| 1 | Withdraw at Age 55 | At age 55, contributions from Accounts 1 and 2 merge into Account 55. You can withdraw all or part of your savings. If you continue working, further contributions will go into the Akaun Emas account, which can only be accessed at age 60. | With MyKad:
Without MyKad:
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| 2 | Withdraw at Age 60 | This option is for those who choose to delay retirement after age 55. At age 60, savings in Akaun 55 and Akaun Emas can be fully withdrawn. | Same as for age 55 | |
| 3 | Pensionable Public Service Member | EPF savings balance after government share separation. | With MyKad:
Without MyKad:
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| 4 | Incapacity | Members who lose work ability due to medical conditions can withdraw all EPF savings and receive RM5,000 as disability benefits. |
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| 5 | Leaving the Country</ | Leaving the Country | Members who plan to emigrate permanently and have a minimum of 5 years of contributions can withdraw all EPF savings. |
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| 6 | Upon Death | In the event of a member’s death, the beneficiaries can claim the entire EPF savings balance. |
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Partial Withdrawal Reasons for EPF/KWSP
EPF members may also opt for partial withdrawals based on specific needs, including:
- Buying a house
- Paying for medical expenses
- Education funding
- Investment purposes
- Retirement planning
EPF Special Withdrawal Plans: i-Lestari, i-Sinar, i-Citra, and the Fourth Special Withdrawal
These special withdrawal plans allow members to access their EPF savings under certain circumstances, particularly during economic hardships or health crises. Each plan has specific eligibility criteria and application processes.
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