IF EPF savings are increasingly insufficient for retirement, it’s worth asking whether the problem lies with withdrawals or with how much Malaysians are actually able to save after meeting cost of living.
Retirement savings targets have risen but think about why that matters. EPF’s new RIA Framework sets RM390k (basic) and RM650k (adequate) and these aren’t arbitrary; they’re tied to estimated living costs. Yet most Malaysians still don’t meet the old target.
Millions still have extremely low balances: 6.3 million contributors under 55 had less than RM10,000 saved (2023), meaning an expected monthly retirement income below RM42, a level that can consign retirees to “poor” status.
Low balances and early withdrawals are symptoms of the same thing: wages are low, work insecure, & living costs rise faster than people wages & savings. Our system doesn’t just fail the poor; it produces retirement poverty.
This matters, because sickness and healthcare needs rise after retirement. If people have already drained their EPF just to survive, they will be forced to scrape the barrel when illness hits, even though healthcare is a public responsibility.
So the real question isn’t whether RM390k or RM650k is “enough.” It’s why such a large share of Malaysians will never even get close under today’s low-wage economy.
That’s why we should start discussing a government-backed retirement safety net, a national retirement fund for those with little or no EPF, so people can age with dignity, not poverty. – February 4, 2026
Charles Santiago
Former Klang MP
