What happens when we have more than RM1 million in our EPF?

What happens when we have more than RM1 million in our EPF?

If we have more than RM1 million in our EPF…

If we need money and we prefer to use our own money versus borrowing them from some financial institution (legal ones please), then take a look at how much we actually already accumulated in our EPF savings. We can withdraw any amount we have when our EPF savings have exceeded RM1 million. Well, if we have RM1 million in EPF when we are 60 years old, this RM1 million divided by 20 years and 12 months meant we have RM4,167 per month to spend. I would assume by then we already have one property which is under our name and we no longer pay any mortgage or rental. RM4,000 plus just for food is pretty healthy yeah.

Not many has RM1 million in EPF but..

Many Malaysians may not know this maybe because they may not have RM1 million currently. However, for those whose EPF savings have exceeded RM1 million, you have this flexibility. I think this is because EPF believes you definitely knows how to handle money well and maybe can withdraw and use it for investments which could achieve higher returns than EPF? Well, not easy but if indeed you could do so, then you have that flexibility.

Note – RM1 million requirement is only for this year because in 2026…

If we intend to withdraw in 2026, then we can only withdraw if our total exceeds RM1.1 million. EPF will gradually increase the excess savings withdrawal threshold, from RM1 million in 2025 to RM1.1 million in 2026, RM1.2 million in 2027, and RM1.3 million in 2028.. Technically, it gets harder each year. Beyond 2028, EPF did not say anything yet. I do think RM1.3 million is already a very good number lah. No need increase any further.

Where do I go to start this withdrawal?

Do refer here: EPF Website. It states that members with more than RM1 million in savings have the flexibility to withdraw and manage excess savings on their own.

Members can withdraw any amount exceeding RM1 million, with withdrawals first deducted from their Akaun Fleksibel (Account 3). If that balance is insufficient, funds will then be taken from their Akaun Sejahtera (Account 2) and Akaun Persaraan (Account 1).

How to withdraw the excess amount?

Just login to  KWSP i-Akaun app to initiate the withdrawal, and the payment will be deposited into the bank account linked to your EPF account.

Alternatively, you can manually complete the KWSP 9B (AHL) form and submit it at your nearest EPF counter or mail it to them.

Have savings exceeding RM1 million with the EPF

What we can withdraw

Any amount exceeding RM1 million in savings. The withdrawal amount will be taken from the Akaun Fleksibel first, if insufficient, the withdrawal amount will be taken from the Akaun Sejahtera. If the withdrawal amount is still insufficient from the Akaun Fleksibel and Akaun Sejahtera, the withdrawal amount will be taken from the Akaun Persaraan.

Why we should NOT withdraw this excess amount?

If we are withdrawing to buy a new car… erm… really need that new car? If we are withdrawing to go vacation… erm… do we really want to spend future money for holidays today? If we are withdrawing to go on a shopping spree… erm… do we really want to buy, buy and buy and lose, lose, lose all the subsequent dividends from EPF? Chances are the dividend for 2025 could be 5.5 percent or more. This is based on what analysts have been estimating based on the first half earnings from EPF.

Why we SHOULD withdraw this excess amount?

Some of us could be an expert in stock investment. Withdrawing gives us more ‘bullet’ to enter the market and possibly earn more. Some of us are able to find another investment which gives much higher dividends than what EPF could give. If there’s such an investment, then of course it’s best to withdraw and put the excess money into that investment instead. Just remember to check very carefully because EPF is considered a safe investment but if the returns are too high, it could also carry a risk too. It’s our money, so please do sufficient due diligence yeah.

Wishing every kopiandproperty.com reader achieving this excess RM1 million in the near future. Work hard and get more.

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