KUALA LUMPUR: The government does not allow any withdrawals, including for haj purposes, from the Employees Provident Fund's Akaun Persaraan.
This is to ensure that members have basic savings of at least RM240,000 to ensure survival during retirement, the Dewan Rakyat was told.
Deputy Finance Minister Lim Hui Ying said the account, previously known as Account 1, was intended as a retirement savings and consists of 75 per cent of a person's EPF contributions, with the savings only being withdrawn when the member reaches the age of 55.
"Despite that, members are allowed to make withdrawals for other purposes such as housing, life insurance, critical illness, education, health (critical illness and fertility), as well as withdrawals at the age of 50 through Akaun Sejahtera, which was established to allow members to make withdrawals for any purpose at any time," she said in response to Dr Abd Ghani Ahmad (PN-Jerlun).
Ghani had asked whether the government was prepared to allow EPF contributors who are chosen to perform the haj to withdraw their savings before reaching retirement age.
Starting May 11 this year, there are three accounts in EPF, namely Akaun Persaraan, Akaun Sejahtera and Akaun Fleksibel.
Meanwhile, Lim said Akaun Sejahtera's introduction in 2013, a total of 6,070 haj withdrawal applications from the account, previously known as Account 2, have been approved with a total withdrawal amount of RM16.7 million.
She said this was equivalent to an average of RM2,759 per application.
Lim added that the amount that can be withdrawn from the account is the difference between the total pilgrimage cost and the member's Tabung Haji savings account balance at the time of accepting the offer.
This, she said however, was subject to a maximum amount of RM3,000 or the account balance, whichever is lower.
She said if members need additional funding, they can withdraw savings from the Flexible Account.
Meanwhile, Lim said that as of Aug 31 this year, a total of 872,000 EPF members, accounting for 10.2 per cent of the active members, have made voluntary contributions amounting to RM9.39 billion.
EPF members can contribute voluntarily to boost their savings, with an annual contribution limit of RM100,000 starting June 1, 2023.
Lim said EPF allows individuals to register and make voluntary contributions as early as 14 years old, as part of its efforts to encourage savings and benefit from compound dividends earlier.
"Although those under 16 years old typically do not work formally, they can make their contributions or receive contributions from others (such as parents) into their EPF accounts.
"There is no minimum amount set. However, voluntary contributions are subject to a limit of RM100,000 per year. This is a positive step for young people to start saving and to foster awareness about the importance of long-term savings."
Regarding the i-Sayang facility, Lim said since its inception in March last year, approximately 86,000 husbands have participated in the programme, involving a total contribution transfer of RM22.1 million as of August this year.