Flexi EPF scheme a hit

KUALA LUMPUR: More members of the Employees Provident Fund (EPF) are going for flexible withdrawals in their retirement.

The “Flexible Age 55 Withdrawals” increased by 105.45% in the second quarter of this year compared with the same period last year.

The withdrawal scheme offers members the option of receiving their EPF savings in instalments or on an ad hoc basis.

In a statement issued yesterday, EPF said a total of 13,533 applications were approved for the withdrawal scheme from April to June this year — a huge increase from 6,587 applications.

The total sum withdrawn amounted to RM705.89mil compared to RM387.14mil in the corresponding period last year.

“This demonstrates a greater awareness among members that a lump sum withdrawal may lead to inadequate funds during their retirement,” said EPF chief executive officer, Tan Sri Azlan Zainol.

However, “Lump Sum Age 55 Withdrawals” remained the preferred option for members upon reaching age 55.

A total of 39,901 applications for this withdrawal were approved in the second quarter — an increase of 22.67% from 32,526 approved applications last year.

A sum of RM1,807.01mil was withdrawn from April to June this year compared with RM1,361.00mil in the year before.

The withdrawal of “Savings of More Than RM1 Million” has also registered an increase during the quarter under review.

The number of approved applications in the second quarter for the withdrawal increased 64.56% to 339 from 206 applications last year.

The total amount withdrawn from April to June was recorded at RM115.68mil compared with RM78.75mil in the corresponding period last year.

EPF also announced that it had maintained its service levels as indicated in its Customer Service Charter — 91.31% of age 50 and age 55 withdrawals were processed within three days while 99.26% of housing withdrawals were processed within 21 days from April to June.

19/8/2009