KUALA LUMPUR (Nov 3): Akaun Emas, to be introduced next year, will serve as a second retirement nest egg for Employees Provident Fund (EPF) members, the retirement fund said today.

The new account, EPF said, will allow members to accumulate extra savings should they continue to work between age 56 and 60.

Savings parked in Akaun Emas can only be withdrawn when members reach the age of 60, to ensure the sufficiency of their retirement savings.

The new initiative is one of EPF's enhancements to its schemes as set out under EPF Act 1991, and followed a consultation with stakeholders held last year.

Speaking to pressmen at a media briefing today, EPF chief executive officer Datuk Shahril Ridza Ridzuan said Akaun Emas was initiated as the pension fund realised that average Malaysians continue to work beyond the age of 55.

"The extra savings accumulated during this five-year period will go a long way in serving members' needs when they retire," he said.

Despite the creation of the new account, Shahril said the current age 55 withdrawal will be maintained.

"All existing balances for members above age 55 will remain available for withdrawal," he said.

"Members will also continue to earn dividends for their savings in both accounts until age 100," he said, adding that this was a result of changes in the dividend policy, now extended to 100 from 75 presently.

He believed with the extension of the dividend payout policy, members would benefit from the compounding effect on dividends received until a full withdrawal is made.