If you work and contribute to KWSP (EPF), the money that goes in every month is actually divided into three accounts.

Each account has a different purpose and different withdrawal rules.

Since the restructuring on 11 May 2024, KWSP has used three accounts:

1. Retirement Account

The Retirement Account is the main account for your retirement savings.

75% of new contributions goes into this account. Withdrawals are only allowed for purposes specified by KWSP.

Simply put, the money in this account is designed for life after retirement, rather than everyday spending.

2. Sejahtera Account

15% of new contributions goes into the Sejahtera Account.

Savings in this account can be used for certain approved purposes, including housing, education, healthcare and Hajj, subject to KWSP's withdrawal requirements.

So, while this account is more accessible than the Retirement Account, withdrawals are still limited to specific purposes and conditions.

3. Flexible Account

The Flexible Account receives 10% of new contributions and is designed to give members access to their savings for current financial needs.

Unlike the other two accounts, money from the Flexible Account can be withdrawn at any time, subject to KWSP's requirements and a minimum withdrawal of RM50.

For example, it can be used when you face an unexpected expense or need some extra cash.

So, What's the Difference?

An easy way to remember:

  • Retirement Account = your future
  • Sejahtera Account = specific needs
  • Flexible Account = current needs

For every new contribution, 75% goes into the Retirement Account, 15% into the Sejahtera Account and 10% into the Flexible Account.

3 Words to Learn

1. Contribution: money paid regularly into a scheme or account, such as KWSP.

2. Retirement: the period of life after a person stops working permanently.

3. Flexible: something that can be easily adapted or used according to different situations or needs.

Having three KWSP accounts doesn't mean you have three savings pots with the same purpose.

Each account is designed for a different need, from long-term retirement savings to specific expenses and immediate financial needs.

So, before withdrawing your KWSP savings, make sure you understand which account the money is coming from and how the withdrawal could affect your future savings.