EPF withdrawal for age below 55
All this while, many of us still think that the EPF withdrawal is only eligible when you reach 55 or 60 years old and above. That is totally not right. As of the writing of this post, there are several conditions or situations where you are permitted to withdraw your Employee Provident Fund (EPF) for Malaysians.
Types of EPF Withdrawal for age under 60
Malaysia Employee Provident Fund (EPF) or in Malay, Kumpulan Wang Simpanan Pekerja has made these types of withdrawal for quite some times now. This move is very good in easing us making one of the biggest purchases of the most important things throughout our lives.
Without further a due, here is the list of the types of EPF withdrawal for those under sixty years old:
1. Buy/Build Second House
All of us know that, buying a home is a major purchase and it is needed throughout your lifetime.
Everybody in this world has the right to have access to education. However, a higher level of education requires you to spend a big amount of money for enrollment. That is why EPF withdrawal for education is really helping those who are currently have jobs.
3. Going for Hajj
This is for Muslim only. Nowadays, the minimum cost for a Muslim to go for Hajj is at least RM10,000. Sometimes, personal savings for a couple of years are just not enough. Thank you to the EPF, now more Muslims are able to fulfill their spiritual/religion needs.
Is this covering common flu and fever? Definitely not. You can withdraw your EPF for moderate and of course severe diseases. Even the good news is that, you can cover your own family members.
5. Housing Loan Monthly Installment
For an average Malaysian nowadays, you can expect to pay at least RM1,000 per month for your mortgage. I believe this is the cheapest. Mine is RM750 and this is for the last 6 years. The sad thing is that the minimum salary in Malaysia is RM1,200. Just be reminded that the EPF withdrawal for hosing loan monthly installment is for twelve consecutive months only.
Well, this one is pretty straight forward. If you are unable to work anymore due to accident or disease, how can you get money to live?
7. Leaving Country
Thinking of leaving Malaysia? Do not forget your employee provident fund. You can withdraw it for this reason.
8. Members Investment Scheme
There are several investment schemes that are approved by EPF for the employee to take part using the funds from their account. Basically, these investments will add value to the current funds in their coffer.
9. Pensionable Employees
Let say you have been working for a private company and after multiple times applying for a government jobs in Malaysia and get an offer, be ready to be eligible for the EPF withdrawal. However, not all government jobs offer pensionable post.
The nine list above is more than enough for you to start thinking whether you really need to withdraw your EPF. Just remember that, this is your hard earned money for your retirement.
Actually there are three more types of EPF withdrawal which are i) Pension Supplementary Payment, ii) Reduce/Redeem First Housing Loan and iii) Reduce/Redeem Second Housing Loan but I do not think it is necessary to make such a highlight. Just think that, EPF withdrawal is your last resort to filling your basic needs.