A groundbreaking achievement in Malaysia's retirement savings landscape has been reached, with over 40% of EPF members surpassing the basic target for retirement savings for the first time ever. According to EPF's latest figures, released in 2026, 41.2% of active members, specifically those in the formal sector, had accumulated RM240,000 in their EPF savings by 2025. This milestone is a testament to the growing awareness and success of retirement planning among Malaysians.
EPF CEO Ahmad Zulqarnain Onn highlighted the significance of this achievement, noting that the organization has been monitoring this figure since 2007. He expressed optimism about the progress made, despite acknowledging the ongoing challenges in achieving this goal. The EPF's Basic Savings target, which serves as a benchmark for retirement needs, has been set at RM240,000 for 2019-2025 and increased to RM270,000 for 2026. This gradual increase reflects the evolving financial goals of Malaysians.
The EPF's Retirement Income Adequacy (RIA) Framework provides a comprehensive guide for members, outlining three tiers of savings targets: Basic Savings (RM390,000) for essential needs, Adequate Savings (RM650,000) for a reasonable standard of living, and Enhanced Savings (RM1.3 million) for financial security and a higher quality of life. To ensure a smooth transition, the Basic Savings target at age 60 will be increased by RM30,000 annually, reaching RM390,000 by 2030.
The surge in EPF members achieving the Basic Savings target can be attributed to various factors. Zulqarnain explained that while the percentage had been increasing before the pandemic, it temporarily decreased during the Covid-19 era due to special withdrawals allowed by EPF. With the lifting of these restrictions, the savings trend is now on an upward trajectory, fueled by increased participation and voluntary contributions from EPF members.
