As of May 31, 2026, 3.04 million or 38.3% of 7.94 million active EPF members aged between 18 and 60 achieved the basic retirement savings target of RM390,000 by age 60, up from 35.0% or 2.71 million members a year earlier on May 31, 2025 [1, 2, 3, 4]. Deputy Finance Minister Liew Chin Tong said, "A total of 3.04 million formal active Malaysian members... have achieved the Basic Savings target by age." [4]
The EPF has introduced several measures to improve retirement savings adequacy. Members can make voluntary contributions through schemes such as i-Topup and i-Simpan, allowing annual top-ups up to RM100,000. The i-Legacy program enables savings transfers above RM650,000 to younger family members, with RM46.3 million transferred by 63 applicants to 86 recipients as of May 2026 [1].
EPF contributions are split into three accounts: 10% goes to the Flexible Account for short-term withdrawals, 15% to the Wellbeing Account for approved purposes like housing and healthcare, and 75% goes to long-term retirement savings. Liew explained, "Withdrawals under Flexible Account 3 are structured, with a 10 per cent allocation... the Wellbeing Account receives 15 per cent, while 75 per cent goes to long-term retirement savings." [2, 3]
However, about 6.1 million EPF members currently have savings below RM10,000 following withdrawals made during the COVID-19 pandemic, raising concerns of elderly poverty and retirement readiness [2, 3].
The Dewan Rakyat recently discussed measures to strengthen retirement savings amid rising living costs and an ageing population. Liew said government policies under the Madani Economy framework aim to raise wages and household incomes over the next 10 years to help address savings gaps. "If, over the next 10 years, incomes rise, then this issue can be managed more effectively," he added [2, 3, 5].
The Retirement Income Adequacy framework provides recommended savings targets by age to help EPF members plan better [1, 4]. Liew also noted that "the government and EPF will continue to strengthen close cooperation in formulating holistic financial policies and mechanisms, including improvements to contribution incentives and social protection to enhance retirement savings adequacy." [2]
Deputy Finance Minister Liew addressed parliamentary questions on July 6, 2026, reiterating the government's commitment to improve retirement savings for Malaysian workers [1, 2, 3, 5, 4].
