What Happens To Your EPF Savings If You Continue To Work After Retirement Age?

With rising living expenses, many people may delay their retirement plans and continue to work to earn stable income. According to a survey conducted by the University of Malaya, which sampled data from Malaysians aged 40 and above, close to half of the respondents (45%) are still working.  

Additionally, 37.3% of the respondents did not give much thought about retiring as their low and inconsistent income would require them to continue working. Meanwhile, 22.5% of those surveyed planned to reduce work hours or change type of employment and 20.6% thought about working as long as their health permits. 

Besides earning stable salary, some people continue to work to stay active or lend their skills and experience at the workplace. As more people consider working past retirement age, one may be interested to know how this will impact their Employee Provident Fund (EPF) savings. 

Read Also: What Happens To Your EPF Savings When You Leave Malaysia? 

At What Age Can You Withdraw From EPF For Retirement? 

The retirement age in Malaysia is 60. However, Malaysians are allowed to make a one-time partial withdrawal from the Wellbeing Account once they reach age 50 for retirement planning. They will gain full access to their EPF savings when they reach age 55.  

There are three EPF accounts, which are the Retirement Account, Wellbeing Account and Flexible Account. Employees make monthly contributions to the EPF, with 75% of the contributions going into the Retirement Account, 15% into the Wellbeing Account and the remaining 10% into the Flexible Account.  

Savings in the Wellbeing Account and Flexible Account can be withdrawn prior to retirement. Meanwhile, savings in the Retirement Account can only be withdrawn at retirement age. 

Upon reaching the age of 55, contributions in the Retirement Account and Wellbeing Account will be combined into a new account known as Account 55. As a citizen of Malaysia, you will have the choice to withdraw the entire or part of the savings in Account 55.   

For non-Malaysians, if you became an EPF member before 1 August 1998, you have the option to withdraw the savings either in full or partially. If you became a member on or after 1 August 1998, you will only have the option to withdraw the savings in Account 55 in full. 

What Happens If You Continue Working After Retirement? 

For those who continue working after age 55, your EPF contributions will go into an EPF account known as the Gold Account. 

At age 60, your contributions in Account 55 and Gold Account will be consolidated. You can choose to withdraw your combined EPF savings in full or partially at any time.    

If you choose to continue working past the age of 60, you will no longer be required to contribute to EPF. This is to help maximise the take home pay for those who are working past the age of 60.  

Meanwhile, employers are required to contribute a minimum of 4% of the monthly salary for employees aged 60 and above.  

EPF Withdrawal Options 

After saving up for many years, now you can access your EPF savings and enjoy the fruits of your labour. EPF members have the option to withdraw their savings in full. Alternatively, EPF had also introduced monthly payments to pace the withdrawals and ensure that retirees will continue to have stable income.  

The following is the different types of withdrawal options for Malaysian workers: 

• Withdraw entire savings from Account 55 

• Withdraw entire savings from Gold Account  

• Withdraw a part of your savings, with no minimum amount requirement 

• Monthly payments of at least RM100 for a minimum of 12 months 

• Withdraw yearly dividends  

• Withdraw monthly dividends of at least RM100 per month for a minimum of six months  

• Transfer of at least RM1,000 to appointed fund management institutions for investment purposes 

All withdrawal options listed above are available to Malaysian citizens and non-Malaysians who became an EPF member prior to 1 August 1998. 

Applying For EPF Withdrawals 

Workers can apply for withdrawal of EPF savings online via KWSP i-Akaun or manually. Applicants will need to prepare the following documents for withdrawals: 

• Identification card 

• Savings account statement/ current account statement/ verification letter of account holder’s details from bank/ account holder’s details 

• If there’s an issue with thumbprint verification, applicants will need to place a thumbprint on the Form KWSP 3 (Amendment) 

For foreign applicants, you will need to prepare the additional documents below:  

• Form KWSP 9B (AHL) and checklist 

• Copy of identification documents with original copy for verification. 

For former Malaysian citizens that were EPF members before 1 August 1995 who are unable to produce an identification card, you will need to furnish your passport and certification of citizenship. 

EPF Withdrawal Payment Methods 

Your withdrawal payments will be credited to your bank account, provided that you have an active bank account with a panel bank and your identification details match the bank records. Otherwise, you will be issued a banker’s cheque. 

If you’re living overseas, full payments of your withdrawal amount will be paid to you via Foreign Demand Draft in the currency of your choice, provided that the currency is in the list of approved currencies. Otherwise, payment will be made in US Dollars. 

Read Also: Retirement Account, Wellbeing Account, Flexible Account: Guide To Malaysia’s EPF Accounts And Contribution Rates 

Follow Us On Telegram & Instagram!

Join our Malaysia Telegram channel (@dollarsandsensemy) and follow our Malaysia Instagram Page (@dnsmalaysia) as we bring you the latest finance content in Malaysia!