According to a survey by The Star revealed that the majority of Malaysians who access their Employees' Provident Fund (EPF) Account 3, or Flexible Account, do so mainly to settle outstanding debts.
The survey, which received responses from 1,300 participants, showed that 42.11% of those who withdrew funds from these accounts used them for debt repayment.
The period to transfer funds from EPF Account 2 to Account 3 ends on 31 August.
During this period, 48% of respondents chose a one-time transfer, although only 29% actually made a withdrawal.
Aside from debt repayment, other reasons cited for withdrawals include education (12.57%), shopping (8.63%) and starting a business (5.56%).
The EPF Account 3 was introduced as part of a restructuring plan effective May 11, aimed at addressing the short-term financial needs of EPF members.
The restructuring also involved dividing EPF contributions into three accounts, with 75% going to Account 1, 15% to Account 2, and 10% to Account 3.
This move aims to increase the security of retirement savings while supporting EPF members amid the rising cost of living.
