KWSP/ EPF changes to Housing and Education Withdrawals

Employees Provident Fund (EPF) or KWSP made an announcement on 10 April 2006 over the Withdrawal Scheme for repayment of housing loan and education expenses.

"Under the Housing Withdrawal, members can now withdraw their Account II savings once every year to reduce or settle their housing loans. Withdrawals can be made annually from the last date of withdrawal, with a minimum amount of RM500.

In addition, members are now given the flexibility to help their spouses reduce or settle their housing loans even if the member is not a joint owner, a requirement prior to this new amendment to the EPF's procedure. Some of the conditions for this withdrawal include that the member shall not be the borrower, the spouse is the purchaser and borrower of the housing loan, the property is mortgaged with the bank and proof of marriage."

These are the changes much welcomed by the community.

EPF money is for retirement. A house free of mortgage is for retirment. From the perspective of financial, education is to increase earning capability of our labour works. Theoretically, the increased earnings of our labour works should increase our nest egg for retirment.

And the money spent on our children education is a form of retirement plan too, well, based on our current social structure.

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