Only around 39% of active EPF members in the formal sector are currently on track to reach the Basic Savings benchmark of RM390,000 by age 60, Prime Minister Datuk Seri Anwar Ibrahim said.
In a speech delivered on his behalf by Finance Minister II Datuk Seri Amir Hamzah Azizan at the EPF International Social Wellbeing Conference 2026, Anwar said the figure had improved from 36% in June 2025 to 39% in June 2026.
Most members still not on track
While the increase shows some progress, it also means that roughly six in 10 active formal sector members are still not on track to meet the Basic Savings target.
Anwar said this remains a concern, especially as Malaysians could spend 20 to 25 years in retirement and risk exhausting their savings too early.
The government is aiming to increase the proportion of members meeting the Basic Savings benchmark to 60% by 2030 under EPF’s Retirement Income Adequacy framework.
What does RM390,000 actually mean?
Under EPF’s Retirement Income Adequacy framework, members are given three retirement savings benchmarks:
- Basic Savings: RM390,000
- Adequate Savings: RM650,000
- Enhanced Savings: RM1.3 million
The Basic Savings level is designed to cover essential retirement needs, while the Adequate Savings benchmark is intended to support a more reasonable standard of living.
EPF says the RM390,000 benchmark is intended to provide at least RM1,625 a month in the first year of retirement, with withdrawals projected across 20 years from age 60 to 80.
RM390,000 benchmark is being phased in
However, the RM390,000 figure does not become the full Basic Savings threshold immediately.
EPF is gradually raising the Basic Savings benchmark over five years:
- RM270,000 in 2026
- RM300,000 in 2027
- RM330,000 in 2028
- RM360,000 in 2029
- RM390,000 in 2030
The phased approach is intended to give members time to adjust to the higher retirement savings target.
Earlier data showed a similar picture
The latest figure is broadly in line with data presented in Parliament earlier this year.
As of May 31, 3.04 million out of 7.94 million active Malaysian EPF members aged 18 to 60, or 38.3%, had reached the Basic Savings target appropriate for their age. Malay Mail
That was an improvement from 35% a year earlier.
While the trend is moving upwards, Anwar said the government still needs to strengthen retirement security so more Malaysians can maintain adequate savings throughout their later years.
