EPF unveils new retirement framework to boost M’sian’s retirement security
KUALA LUMPUR (Dec 16): The Employees Provident Fund (EPF) has unveiled a new three-tier Retirement Income Adequacy (RIA) Framework, meant to help Malaysians achieve different levels of financial security after retirement.
The initiative, which will be implemented in January 2026, provides savings benchmarks categorised in three levels: Basic, Adequate, and Enhanced – enabling members to set saving targets that align with their retirement aspirations and lifestyles.
Launched alongside the Belanjawanku 2024/2025 guide, the RIA Framework reflects EPF’s efforts to emphasise retirement savings as a source of sustained income.
According to EPF, the framework highlights the importance of understanding the savings required to maintain a decent standard of living after retirement.
The Belanjawanku guide, developed in collaboration with the Social Wellbeing Research Centre at Universiti Malaya, estimates that a single elderly individual requires RM2,690 monthly to achieve what the guide regards is an ‘adequate’ retirement standard.
Under the RIA Framework, individuals in the ‘adequate’ savings category would need to save 240 times this amount, totalling RM650,000.
Those in the ‘basic’ tier would require RM390,000, or 60 per cent of the adequate savings benchmark, while the ‘enhanced’ tier requires RM1.3 million, which is double of the adequate savings amount.
The ‘basic’ savings benchmark of RM390,000 marks a significant increase from the previous benchmark of RM240,000.
EPF said this transition will be phased, with annual increments of RM50,000 over three years, culminating in 2028.
To ensure the benchmarks remain relevant amidst rising living costs, EPF plans to review the RIA Framework every three years, starting in 2029, using updated data from the Belanjawanku findings.
Meanwhile, for members with savings exceeding RM1 million, the withdrawal policies will align with the enhanced savings benchmark.
The withdrawal threshold for this category will also rise incrementally by RM100,000 annually over three years.
Meanwhile, under the Members’ Investment Scheme, members will be able to transfer 30 per cent of their savings above the basic amount in Akaun Persaraan (Retirement Account) to approved funds managed by fund management institutions starting Jan 1, 2026.
EPF chief executive officer Ahmad Zulqarnain Onn said the RIA Framework and Belanjawanku initiatives aim to assist Malaysians in navigating the challenges of managing household expenses while preparing for retirement.
He emphasised that these initiatives provide a comprehensive view of monthly expenditures and the new savings benchmarks are meant to guide members toward a fulfilling and dignified retirement.
“These initiatives underscore EPF’s commitment to adapting to evolving socioeconomic realities and ensuring no Malaysian is left behind in planning for a secure and meaningful future,” he said.
The Belanjawanku 2024/2025 guide is available for download on the EPF website.
-Agency
