THE Ministry of Finance has confirmed that the majority of Employees Provident Fund (EPF) members aged between 18 and 55 have yet to reach the basic savings benchmark required for a dignified retirement, raising fresh concerns over long-term financial security.
In the Dewan Rakyat today, Tebrau MP Jimmy Puah Wee Tse called on the ministry to state the current total contributions and number of Employees Provident Fund (EPF) members as of October 2025.
And, considering the current life expectancy of Malaysians and the retirement age, he further asks whether the level of contributions is sufficient for members to retire comfortably.
In a parliamentary response today, Deputy Finance Minister Lim Hui Ying disclosed that as of 31 August 2025, only 23.9 per cent of all EPF contributors in this age bracket had met the Basic Savings thresholds aligned to their age.
The full target stands at RM240,000 by age 55.
“The low percentage is largely due to nearly half of EPF members being inactive contributors,” Lim stated.
Out of 16.5 million EPF members nationwide, 9 million (or 55 per cent) are currently active contributors, with total member savings reaching RM1.31 trillion—an increase of 9.9 per cent from 2024 and 20.8 per cent from 2023. Active contributors account for RM1.07 trillion of the total sum.
Among active formal sector members aged 18 to 55, 38.8 per cent have attained their respective savings targets—up from 30.4 per cent in 2022.
The ministry described this as a “notable improvement” following earlier withdrawals permitted under COVID-19 relief measures.
According to the data, savings adequacy remains particularly low among younger and pre-retirement age groups. Just 18.6 per cent of members aged 18 to 30 have met the basic savings level for their age, while only 21.2 per cent of those aged 51 to 55 have done so, Lim explained.
The ministry attributed this persistent savings gap to multiple structural and behavioural factors, including Malaysia’s comparatively low wage levels, inconsistent contribution patterns, early full withdrawal eligibility at age 55 (which does not align with the official retirement age), and limited financial literacy among the public.
“This situation underscores the importance of long-term financial planning,” the ministry said, adding that the EPF has been rolling out a range of initiatives to help members improve retirement preparedness.
“These are part of ongoing efforts to ensure members are financially secure in their post-working years.” - October 8, 2025
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