SHAH ALAM, Mar 5 — Only 3.1 million Employees Provident Fund (EPF) contributors aged 18 to 55 in the formal sector, or 41.2 per cent, have met the basic retirement savings benchmark of RM390,000 as of the end of 2025.
Finance Minister II Datuk Seri Amir Hamzah Azizan said the remaining 4.42 million members (58.8 per cent) have yet to reach the targeted level, indicating that a majority of contributors still fall short of the minimum savings target needed for retirement.
However, he said the government projects that the situation could improve over the next few years if contribution patterns remain stable.
“Based on current projections, by 2030, around 60 per cent of members are expected to reach the basic savings benchmark of about RM390,000 at the age of 60,” he said during the question and answer session at the Dewan Negara today.
Amir Hamzah said the government and EPF have introduced several measures to strengthen retirement savings among contributors, including restructuring EPF accounts, encouraging voluntary contributions, and expanding incentive programmes.
These include initiatives such as i-Saraan, voluntary top-ups and financial literacy programmes aimed at encouraging Malaysians to plan for retirement earlier.
“EPF encourages members not to make full withdrawals at once, but instead consider monthly withdrawals so that their savings can continue to grow through annual dividend returns,” he said.
According to Amir Hamzah, this approach could help ensure retirement savings last longer and provide a more stable income during retirement.
Separately, he said any proposal to raise the mandatory retirement age remains under study by the Economy Ministry, adding that the matter requires careful consideration due to its wider implications on the labour market.
“The issue of retirement age is quite complex and is currently being studied by the Economy Ministry. Its implications need to be examined carefully, including the impact on promotion opportunities for those still in service,” he said.
