Over 40% of EPF Members Achieve Basic Retirement Savings Milestone for the First Time
SHAH ALAM, Feb 28 — Malaysia’s Employees Provident Fund (EPF) has reached a historic milestone, with more than 40 per cent of its active members achieving the basic retirement savings benchmark for the first time since tracking began in 2007.
Latest figures show that 41.2 per cent of active contributors in the formal workforce had accumulated at least RM240,000 in their EPF accounts as of 2025.
EPF chief executive officer Ahmad Zulqarnain Onn described the achievement as a significant step forward in strengthening Malaysians’ retirement preparedness.
Rising savings levels signal improved financial readiness
He said the increase reflects a steady improvement in retirement savings and demonstrates growing financial discipline among members.
“This is the first time more than 40 per cent of members have reached the Basic Savings level, which is a very encouraging sign,” he said during a media briefing.
He added that continued growth in savings would help improve overall retirement adequacy.
Basic savings benchmark serves as key retirement guide
EPF said the Basic Savings benchmark is designed to help members estimate the minimum amount needed to support essential living expenses during retirement.
The target was set at RM240,000 between 2019 and 2025 but has been raised to RM270,000 starting in 2026.
This revision reflects changing economic realities and higher living costs.
Gradual increases planned to strengthen retirement security
Under EPF’s retirement adequacy framework, the Basic Savings target will increase gradually by RM30,000 each year until it reaches RM390,000 by 2030.
The framework also outlines higher savings categories to encourage stronger financial security.
This structured approach aims to ensure members are financially prepared for retirement.
Savings recovering after pandemic-related withdrawals
Ahmad Zulqarnain noted that savings levels had previously declined due to special withdrawal programmes introduced during the Covid-19 pandemic.
However, with those programmes now ended, retirement savings are steadily recovering.
He said continued contributions and increased participation will further strengthen savings levels.
Milestone reflects growing awareness of retirement planning
The latest figures highlight rising awareness among Malaysians about the importance of retirement savings.
EPF expects more members to achieve the benchmark in the coming years, improving financial security for future retirees.
-wilayah.com.my
