Malaysia targets more EPF contributors to achieve basic savings by 2030

Traders Union
All News
Financial News
EPF savings target for 2030

Highlights

Prime Minister Anwar Ibrahim stressed that many Malaysians remain at risk of exhausting their retirement savings over the 20 to 25 years following retirement.
The government allocated RM1.26 billion for the welfare of 180,000 older Malaysians and is expanding social activity centres for older people.
The introduction of i-Legasi and the EPF Retirement Income Adequacy framework sets basic savings benchmarks and facilitates intergenerational support.

This article was translated from the original. Read the original version by our correspondent here.

Retirement savings targets and coverage challenges

As reported by The Edge Malaysia, Prime Minister Datuk Seri Anwar Ibrahim said too many Malaysians still face the risk of exhausting their savings during retirement, which can last 20 to 25 years.

In his keynote address at the EPF International Social Wellbeing Conference 2026 in Kuala Lumpur on Tuesday, Anwar said the challenge also involves social protection coverage, as millions of people work outside conventional formal employment, while existing systems were largely built around such structures. His speech was delivered by Finance Minister II Datuk Seri Amir Hamzah Azizan.

Anwar stressed that the country's systems must evolve in line with changing work patterns. He said retirement may be viewed on a 30-year horizon by policymakers, but for households managing food, rent and school expenses, the priority may only extend to the end of the week, making financial capacity just as important as financial literacy.

According to him, retirement security begins with income, good jobs and the ability to save consistently, so the retirement agenda must move in tandem with the wage agenda.

The government's role and intergenerational measures

The government has also allocated RM1.26 billion for the welfare of older persons, covering 180,000 older Malaysians, while expanding activity centres to ensure ageing does not lead to social isolation.

Anwar said Malaysia needs a tiered care system, ranging from community support, nutritious food and home assistance to day care, home nursing and residential care for those who are frail or living with dementia. He stressed that access to these services should be based on need, not merely the ability to pay.

EPF Chairman Tan Sri Mohd Zuki Ali said preparing for the future requires a collective effort from the government, businesses, communities, families and individuals. He said the introduction of i-Legasi reflects the importance of intergenerational support by allowing eligible members with sufficient retirement savings to transfer part of their savings to the EPF accounts of immediate family members.

According to him, the Retirement Income Adequacy framework complements these efforts by setting clear benchmarks for Basic, Adequate and Enhanced Savings, giving members a clearer picture of the relationship between their current savings and the monthly income they can support. The two-day conference, themed The Long Horizon, was jointly organised by the EPF and the Ministry of Finance and concluded on Wednesday, 30 Sept.

In our previous article on the National Ageing White Paper 2027 plan, we highlighted the government's efforts to accelerate policy preparations as the population ages and the need for social protection and long-term care rises. We also cited concerns that only four out of 10 EPF contributors are currently on track to meet the RM390,000 Basic Savings benchmark by age 60, with the government aiming to raise that ratio to six out of 10 by 2030.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.