EPF i-Legasi Initiative to Allow Parents to Transfer Retirement Savings to Children Without Annual Cap
SHAH ALAM, March 1 — The Employees Provident Fund (EPF) is preparing to roll out a new financial facility called i-Legasi, aimed at enabling members to transfer part of their retirement savings directly into their children’s EPF accounts.
The upcoming initiative marks a significant development in Malaysia’s retirement savings framework, offering families a structured way to support the next generation’s long-term financial security.
EPF Chief Executive Officer Ahmad Zulqarnain Onn said the scheme would be introduced soon, describing it as a forward-looking approach to strengthen financial resilience across generations.
Helping families build stronger financial foundations
He explained that the facility would be open to members who have already reached the eligibility stage for withdrawals and have accumulated savings above the recommended adequacy level.
This would allow them to allocate a portion of their retirement funds to their children’s EPF accounts, helping younger Malaysians grow their retirement savings earlier in life.
However, the transferred funds will remain locked under existing EPF withdrawal regulations, ensuring that the savings continue to serve their intended purpose as retirement protection.
Currently, EPF members are allowed full withdrawals at the age of 55, while access remains restricted before that age to preserve long-term retirement security.
Greater flexibility without RM100,000 annual restriction
EPF Chief Operations Officer Sazaliza Zainuddin said one of the key advantages of the i-Legasi programme is that it removes the RM100,000 annual limit imposed on voluntary contributions.
Under the existing system, parents wishing to boost their children’s EPF accounts must use personal funds and comply with strict annual caps.
“With i-Legasi, eligible members can transfer their savings directly without being bound by the RM100,000 yearly limit, provided their balances exceed the adequacy threshold,” she said.
This flexibility is expected to encourage more Malaysians to actively participate in long-term financial planning for their families.
Supports national retirement adequacy strategy
The initiative also complements EPF’s Retirement Income Adequacy Framework, which outlines recommended savings levels to help Malaysians maintain financial independence during retirement.
These benchmarks include Basic Savings of RM390,000, Adequate Savings of RM650,000, and Enhanced Savings of RM1.3 million.
Members who have achieved or exceeded these targets are considered financially secure enough to support wealth transfers while safeguarding their own retirement needs.
Strengthening intergenerational financial security
The i-Legasi scheme reflects EPF’s broader commitment to enhancing retirement readiness and promoting sustainable financial planning among Malaysians.
By enabling structured transfers of retirement funds, the initiative provides families with an opportunity to strengthen their financial legacy and ensure continuity of financial protection.
As economic challenges and living costs continue to evolve, early retirement planning has become increasingly critical.
Through i-Legasi, EPF is positioning itself not only as a retirement savings institution but also as a key partner in helping Malaysian families secure their financial future for generations to come.
-wilayah.com.my
