MALAYSIA is targeting to increase the Retirement Income Adequacy framework to six in 10 Employees Provident Fund (EPF) members to reach the ‘Basic Savings’ benchmark of RM390,000 by age 60 by 2030.
Prime Minister Datuk Seri Anwar Ibrahim said currently, nearly four out of 10 EPF members are on track to meet this benchmark under the EPF’s Retirement Income Adequacy Framework.
"This represents progress, yet far too many Malaysians remain at risk of exhausting their savings during a retirement period that could span 20 to 25 years," he said in his keynote address at the International Social Wellbeing Conference 2026, organised by the EPF on Tuesday.
His speech was read by Second Finance Minister, Datuk Seri Amir Hamzah Azizan.
Anwar said retirement planning must also take into account the immediate financial pressures faced by households, particularly those struggling to meet day-to-day expenses.
“Asking people to prepare for retirement decades ahead, while they remained uncertain about their near-term finances, was not simply a matter of financial literacy but also financial capacity.
"This is why the wage agenda and the retirement agenda must move together," he added.
Meanwhile, EPF chairman Tan Sri Mohd Zuki Ali said longevity should not be viewed solely as a challenge as Malaysia moves towards becoming an aged nation.
Rather than treating retirement savings as a lump sum to accumulate, members needed to view them as an income stream that would have to last throughout an increasingly long retirement period.
“Preparing for longer lives required long-term thinking and collective action involving governments, businesses, communities and individuals.
“In view of this, EPF has introduced measures to strengthen retirement security through family support and regular income withdrawals,” he said.
He said i-Legasi allowed eligible members with sufficient retirement savings to transfer part of their savings to the EPF accounts of immediate family members, providing another avenue for inter-generational support.
Through i-Emas, eligible members can receive regular monthly payments from their retirement savings while the remaining balance continues to earn dividends.
“These initiatives formed part of the EPF's broader efforts to strengthen Malaysia's retirement system and build a more inclusive social protection system,” added Mohd Zuki. – September 29, 2026
