If you have at least RM1.05 million in the EPF savings, you are now eligible to withdraw the excess RM50,000 under the EPF's Withdrawal System for Savings of above RM1 million.

This is according to recent Employees Provident Fund's (EPF) statement on 7 April 2010 regarding the changes on the minimum withdrawal quantum for accounts in excess of RM1 million. The minimum eligible amount that can be withdrawn at any one time has been reduced to RM50,000 from RM100,000.

The withdrawal of RM50,000 from the EPF account can be made once every three months subject to there being sufficient amount in the member’s account.

To apply this withdrawal scheme, members are required to complete KWSP 9B (AHL) Form and provide certified true copy of their respective identification card/myKad or Passport (for non-Malaysians or Malaysians who are residing overseas), together with their bank book or current account statement of an account which is still active.

The payment will be made directly to the member’s bank account for application submitted within the country. However, if applications are made from abroad, payment will be made through a foreign bank draft.

This withdrawal scheme for savings of more than RM1 million was first introduced on 1 November 2007 as part of the ‘Beyond Savings’ strategic initiative.

As at 31 December 2008, there are 6462 active millionaire EPF saving member. EPF believed that the members with the total savings of RM1 million is considered sufficient to meet the basic needs during retirement.

Assuming that the EPF member retires at age 55 and his/her living expenses is depend merely on the RM 1 million EPF saving for another 20 years. With the simple calculation, the member will have around RM4167 per month to spend every month.

With the variety withdrawal schemes provided by EPF for the EPF members to withdraw theirs savings, believed that the members that are still qualify for this Withdrawal System for Savings of above RM1 million should be able to generate return rate that is higher than the EPF's return rate if they use it for investment purpose.

Are you confidence that you are able to generate the investment return rate that is higher than EPF's investment return rate consistently? For the financial year 2009 EPF declared 5.65% dividend to the EPF members.

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