Meanwhile, a total of RM5.12 billion has been transferred to the retirement account, according to the finance ministry.

“About 3.16 million members or 24.3% of the total 13.01 million EPF members under the age of 55 have withdrawn a total of RM7.81 billion from the flexible account,” it said on the Parliament website yesterday in a written reply to Abd Ghani Ahmad (PN-Jerlun), who asked about contributors’ flexible account renewal status as of May 11.

The ministry said the initiative was a proactive step to help the people cope with the changing employment landscape, ageing population as well as changing needs according to the life cycle of EPF members.

“Among the members who made the choice to have an initial amount, a total of 41,000 who, before the transfer, had not achieved the basic savings level according to age, have now reached this following the transfer of part of their Sejahtera Account savings to the retirement account,” it said.

The ministry said EPF would remain committed to continuing to provide competitive returns to contributors in an effort to increase their retirement savings balance and prevent contributors from falling into the crisis of old-age poverty.

“Members’ savings balance depends on their trend of contributions and withdrawals,” it said.

Consistent contributions, and withdrawals that are made only for reasonable purposes, will help members build up their retirement savings balance, it added.