MALAYSIA'S steadily rising life expectancy is set to intensify pressure on retirement adequacy, with projections indicating the average lifespan could reach 81 years by 2050, up from 76 years in 2024, prompting fresh emphasis on longer workforce participation.
The Employees Provident Fund (EPF) said working an additional five years could increase retirement savings by up to 40 per cent, offering a crucial buffer against longer lifespans and escalating living costs.
EPF chief executive officer Ahmad Zulqarnain Onn noted that the projection is based on simulations assuming annual dividend returns of approximately five per cent and wage growth of three per cent.
“In Malaysia, the minimum retirement age is set at 60, while the full withdrawal age for EPF savings has remained at 55 since the fund’s establishment in 1951.
“In line with the national minimum retirement age, EPF has introduced the Golden Account, where new contributions after the age of 55 are credited into this account and can only be withdrawn when members reach the age of 60,” he said.
Ahmad emphasised that any revision to the retirement or withdrawal age would require careful and comprehensive evaluation, including consultations with stakeholders and consideration of health conditions, employment sectors and overall worker wellbeing.
He added that the Golden Account plays a key role in strengthening retirement planning for individuals aged between 55 and 60 by ensuring continued savings accumulation.
As a mandatory component for formal sector workers, contributions to the account remain locked in until age 60, allowing funds to grow through EPF dividends.
“This encourages longer-term savings and reduces the risk of insufficient retirement funds,” he said. - April 6, 2026
