Complete Guide to EPF Withdrawal: How and When to Withdraw Money from KWSP

The Employees Provident Fund (EPF), known as Kumpulan Wang Simpanan Pekerja (KWSP) in Malaysia, is a mandatory retirement savings scheme designed to provide financial security for employees during their working years and post-retirement. Contributions are made monthly by both employers and employees, ensuring that Malaysians have a financial cushion when they leave the workforce.

EPF is designed to ensure that every working Malaysian has enough savings for retirement, but life’s financial demands don’t always wait. Whether you need funds for buying a home, funding your child’s education, or handling an emergency, EPF offers different types of withdrawals. 

However, while withdrawals may provide immediate relief, they also reduce your retirement savings, which could impact your financial security later in life. This guide breaks down the various EPF withdrawal options, eligibility criteria, and key considerations to help you manage your savings wisely.

EPF account structure

Withdrawal from akaun Fleksible

Akaun Fleksible (Account 3), introduced in April 2024, allows members to withdraw savings anytime for financial needs. This initiative balances short-term liquidity with long-term retirement planning, providing flexibility without strict restrictions.

Eligibility for Akaun Fleksible withdrawal

Other considerations

• Daily withdrawals are allowed with minimal restrictions.
• No supporting documents are required, but an active bank account is needed.
• Thumbprint verification is needed for certain withdrawals. 

Withdrawal for education

Members can withdraw savings from Akaun Sejahtera (Account 2) to cover education-related expenses. The withdrawal amount is subject to the total tuition fees or outstanding education loan, or the entire savings in Account 2, whichever is lower.

How much can you withdraw?

• If tuition fees or education loan amount is less than your savings in Akaun Sejahtera, you can only withdraw the exact fee/loan amount.
• If the balance in Akaun Sejahtera is lower than the required amount, you can withdraw the entire balance.

Eligible expenses covered by EPF education withdrawal

Eligibility requirements

EPF Education withdrawal for tuition fees vs. study loan

Withdrawal at age 50

When you reach the age of 50, you have the option to make a one-time partial withdrawal from Akaun Sejahtera to support your pre-retirement financial planning. This withdrawal provides members with early access to their retirement savings before reaching the official withdrawal age of 55.

Requirements

1. Malaysians and Non-Malaysians
2. Aged between 50 - 54
3. Have savings in Akaun Sejahtera

Withdrawal at age 55

Upon reaching the age of 55, all contributions from Akaun Persaraan, Akaun Sejahtera, and Akaun Fleksible will be consolidated into Akaun 55. Members can withdraw all or part of their savings at any time. 

If you choose to continue working beyond the age of 55, any new contributions will go into Akaun Emas, which can only be withdrawn at age 60.

Requirements

1. Malaysians and Non-Malaysians
2. Aged between 55 - 59
3. Having savings in Akaun 55

What can you withdraw?

*Payments will be credited on the 25th of each month. If the 25th falls on Saturday, Sunday or public holiday, the payment will be credited on the next business day

**Minimum withdrawal is RM600 (RM100 per month for at least 6 months). The minimum payment period is 6 months and maximum up to 12 months)

***Application through i-Akaun (Member). Transfer of withdrawal amount from Akaun 55 is only allowed to the appointed Fund Management Institutions (FMIs)

Withdrawal at age 60

The Age 60 Withdrawal is an extension of the Age 55 Withdrawal, catered for members who choose to continue working beyond 55 and retire later. Upon reaching age 60, all savings from Akaun 55 and Akaun Emas will be consolidated, and members can opt for a lump sum or partial withdrawal at any time to support their retirement.

Requirements

1. Malaysians and Non-Malaysians
2. Aged 60 and above
3. Have savings with the EPH

What can you withdraw?

*Payments will be credited on the 25th of each month. If the 25th falls on Saturday, Sunday or public holiday, the payment will be credited on the next business day

**Minimum withdrawal is RM600 (RM100 per month for at least 6 months). The minimum payment period is 6 months and maximum up to 12 months)

***Application through i-Akaun (Member). Transfer of withdrawal amount from Akaun 55 is only allowed to the appointed Fund Management Institutions (FMIs)

Withdrawal for Hajj

Muslim members who plan to perform Hajj can use their Akaun Sejahtera savings to supplement their Lembaga Tabung Haji (LTH) savings for hajj expenses. This withdrawal helps eligible members to cover the cost of their pilgrimage.

Requirements

1. Below 55 years of age
2. Selected for hajj by Lembaga Tabung Haji (LTH)
3. First-time applicant for hajj withdrawal
4. Insufficient savings in LTH to cover the full cost

What can you withdraw?

Members can withdraw the difference between the total hajj cost and their LTH savings balance, subject to a maximum of RM 3,000.00.

Alternatively, if the balance in Akaun Sejahtera is lower than the required amount, members can withdraw the full amount available in the account.

Note:

■  The total hajj cost is determined by LTH based on the hajj season

■  For members performing hajj for the second time and beyond, the above difference in total cost does not include the cost of hajj visa

Withdrawal for housing

EPF allows members to withdraw funds to finance home purchases, loan repayments, and construction costs. However, all housing-related withdrawals are only permitted from Akaun Sejahtera. This means members must have sufficient savings in this account to qualify for any housing withdrawal. Below is a breakdown of the different types of EPF housing withdrawals, along with their key eligibility criteria and requirements.

Types of housing withdrawal

Key considerations for EPF housing withdrawals

• All withdrawals are strictly from Akaun Sejahtera. Members cannot use Akaun Persaraan for any pre-retirement housing withdrawals.
• Joint Withdrawals: Members can apply individually or jointly with their spouse or family members to increase the withdrawal amount.
• Loan Refinancing: Withdrawals for loan redemption are based on the lower of the original loan amount or outstanding balance.
• Withdrawal Limitations: EPF withdrawals cannot be used for home renovations, third-home purchases, overseas properties, or personal loans.
• Manual Applications: Certain property types, such as SOHO units, require manual applications at EPF counters.

Withdrawal for healthcare and wellbeing

Healthcare costs can be a significant financial burden, especially for long-term treatments and critical illnesses. EPF allows withdrawals for medical expenses exclusively from Akaun Sejahtera, ensuring members can access funds for themselves and their dependents when facing health-related challenges. Below is a breakdown of the different types of healthcare withdrawals available under EPF.

Types of EPF withdrawals for healthcare

Key considerations for EPF healthcare withdrawals

• All withdrawals are strictly from Akaun Sejahtera. Akaun Persaraan savings cannot be used for medical withdrawals, except for incapacitation cases.
• Supporting dependents: Members can withdraw funds for immediate family members, including spouses, children, parents, and biological siblings.
• Partial employer coverage: If the employer partially covers medical costs, members can only withdraw the remaining unpaid amount.
• Medical verification: A valid medical report from an EPF-approved institution is required for all healthcare withdrawals.
• Incapacitation verification: Members applying for incapacitation withdrawal must undergo an assessment by an EPF-appointed medical board.

Withdrawal for leaving the country

Members who are permanently leaving Malaysia—whether due to renouncing Malaysian citizenship, returning to their home country as an expatriate, or as a foreign worker—can withdraw their entire EPF savings.

Who can apply?

Required documents

Additional documents (Based on member’s status)

Key takeaways

• Entire EPF savings can be withdrawn when permanently leaving Malaysia.
• Supporting documents depend on your status (Malaysian, PR, expatriate, or foreign worker).
• Expatriates should apply at least 2 months before leaving.
• Foreign workers must provide a check-out memo from Immigration.

Withdrawal when you have more than RM 1 million

The EPF provides members with savings exceeding RM1 million the flexibility to withdraw and manage their excess funds independently. This allows greater control over personal financial planning while maintaining security for retirement.

Who Can Apply

1. Malaysians & Non-Malaysians
2. Below 55 years of age
3. Have savings exceeding RM1 million with the EPF

What You Can Withdraw

Any savings exceeding RM1 million can be withdrawn, with the amount deducted in the following order: first from Akaun Fleksibel, followed by Akaun Sejahtera if necessary. If both accounts are insufficient, the remaining withdrawal amount will be taken from Akaun Persaraan.

What is Retirement Income Adequacy (RIA) framework 

Set to launch in January 2026, the RIA framework allows members to set savings targets that reflect different retirement lifestyles and aspirations. The framework encourages a monthly drawdown for 20 years, aligned with average life expectancy in Malaysia. 

To illustrate, the different levels of savings will translate into the following at Retirement Age:

Transition period for new basic savings

The transition to the new Basic Savings benchmark of RM390,000 will be implemented gradually over three years to allow EPF members to adjust to the higher savings requirement. 

The phased approach ensures that members have sufficient time to plan their contributions and align their retirement savings accordingly. The transition timeline is as follows:

• RM 290,000 effective 1 January 2026
• RM 340,000 effective 1 January 2027
• RM 390,000 effective 1 January 2028

This gradual increase replaces the previous Basic Savings benchmark of RM 240,000.

To ensure the RIA Framework remains relevant and reflects changing economic conditions, the savings benchmarks will be reviewed every three years, starting in 2029. The Belanjawanku study, which assesses the cost of living and reasonable living standards for different demographics in Malaysia, will serve as the basis for these adjustments.

This means that after 2029, the Basic Savings, Adequate Savings, and Enhanced Savings levels may be revised to match inflation, changes in living costs, and economic conditions.

Excess savings withdrawal update

For members with over RM 1 million in EPF savings, withdrawals will now be aligned with the Enhanced Savings benchmark of RM 1.3 million at age 60, offering greater flexibility in managing excess funds.

Similar to the phased Basic Savings transition, the withdrawal threshold for savings above RM 1 million will increase by RM 100,000 annually over the next three years.

Additionally, under the Managed Investment Scheme (MIS), members can transfer up to 30% of savings exceeding Basic Savings in Akaun Persaraan to approved funds managed by Fund Management Institutions (FMIs).

Savings benchmarks by age

Impact on EPF members

As of October 2024, 36% of active formal EPF members meet the existing Basic Savings benchmark (RM 240,000 at age 55). With the new benchmarks, this percentage may temporarily decline in the short term. However, these adjustments are essential to ensure that retirement savings remain adequate amid increasing living costs.

The RIA framework is a step towards securing sustainable retirement income, providing members with a clear savings roadmap and structured withdrawals for financial security in their later years.

Withdrawal channel explained

EPF members can choose between online and manual withdrawal methods, depending on convenience and withdrawal type.

Both channels offer secure and structured withdrawal processes to ensure efficient fund access for members.

EPF withdrawals: a financial safety net, not a quick cash solution

Withdrawing from your EPF savings should never be treated lightly, especially when it comes to your retirement funds. While Account 3 offers flexibility for short-term needs and Account 2 allows for essential expenses like housing and healthcare, every withdrawal reduces the amount available for your future.

Retirement savings are meant to sustain you when you no longer have an active income, and depleting them prematurely could mean financial struggles later in life. With the rising cost of living and increasing life expectancy, ensuring that you have sufficient savings to maintain your desired lifestyle post-retirement is crucial.

Before making any EPF withdrawal, consider the long-term impact on your financial security. If possible, explore alternative funding sources for immediate needs and keep your retirement savings intact for when you truly need them. EPF is designed to be a safety net, not a short-term cash reserve—use it wisely to secure a comfortable and stress-free retirement.