An estimated 60% of Employees Provident Fund (EPF) members are projected to reach the basic retirement savings benchmark of around RM390,000 by the age of 60 by 2030, Finance Minister II Datuk Seri Amir Hamzah Azizan said in the Dewan Negara today.
By the end of 2025, 3.1 million active Malaysian citizens in the formal sector—equivalent to 41.2% of members—had already achieved the target savings for their age. This leaves 4.42 million members, or 58.8%, still below the minimum benchmark.
Amir Hamzah highlighted the government’s commitment to curbing the erosion of retirement funds due to early withdrawals. Measures include the new Retirement Income Adequacy benchmark to guide prudent withdrawal decisions and encourage long-term financial planning.
Other initiatives to bolster savings involve account restructuring through Flexible Accounts and promoting voluntary contributions via i-Simpan, i-Saraan, and i-Topup programmes. Members are also urged to choose monthly pension payments over lump-sum withdrawals to protect post-retirement income.
The EPF has seen growth in registered active employers, rising 4.2% to 640,391, and formal sector workers increased 3.3% to 8.2 million in 2025. Annual contributions from Malaysian citizen members also rose 12% to RM120 billion, contributing to stronger overall retirement savings.
