Despite ongoing efforts to strengthen retirement savings, a majority of Employees Provident Fund (EPF) members in Malaysia have yet to reach the minimum savings level considered necessary for retirement.
Finance Minister II Datuk Seri Amir Hamzah Azizan revealed that 3.1 million active EPF members in the formal sector, representing 41.2% of Malaysian citizens aged between 18 and 55, had reached the basic savings level according to their age as of the end of 2025.
This means 4.42 million members, or 58.8%, have not yet achieved the minimum savings level needed to ensure sufficient funds for retirement.
Majority of members still below savings benchmark
Amir Hamzah shared the figures during a question and answer session at the Dewan Negara, while responding to a supplementary question from Senator Datuk Ng Keng Heng regarding the government’s estimate of how many citizens may fail to reach adequate retirement savings within the next 10 to 20 years.
Although many members are currently below the minimum savings target, projections show that around 60% of EPF members could potentially reach the basic savings level of about RM390,000 by the age of 60 by 2030.
To address the issue, the government and EPF are introducing several measures aimed at improving retirement preparedness among Malaysians.
One of these initiatives is the Retirement Income Adequacy (RIA) benchmark, which serves as a guide to help members assess whether their retirement savings are sufficient before making withdrawal decisions.
Amir Hamzah said the benchmark is intended to encourage more prudent long-term financial planning and help prevent savings from being depleted prematurely.
EPF encouraging long-term & voluntary contributions
Several other initiatives are also being implemented to strengthen retirement savings, including:
• Restructuring EPF accounts through the introduction of Flexible Accounts
• Encouraging voluntary contributions through programmes such as i-Simpan, i-Saraan and i-Topup
• Increasing public awareness campaigns on the importance of long term savings
EPF is also encouraging members not to withdraw their savings fully in lump sums, as it may affect their financial security after retirement.
Instead, members are advised to consider monthly withdrawals to ensure a more stable income during retirement.
Contributions and participation continue to grow
At the same time, EPF membership and contributions have continued to increase.
• The number of active employers registered with EPF rose by 4.2%, from 614,563 in 2024 to 640,391 in December 2025
• The number of formal sector workers increased by 3.3%, from 7.9 million in 2024 to 8.2 million in 2025
This growth contributed to a 12% increase in total EPF contributions, with Malaysian members contributing RM120 billion in 2025, compared to RM107.1 billion in 2024.
