(KUALA LUMPUR, March 5) – Second Finance Minister Datuk Seri Amir Hamzah Azizan stated that approximately 60% of Employees Provident Fund (EPF) members are expected to achieve a basic savings level of RM390,000 by age 60, by the year 2030.
He noted that as of the end of last year, among Malaysian citizens aged 18 to 55 in the formal sector, 3.1 million people (41.2%) of active EPF members had already reached the basic savings level corresponding to their age.
"This indicates that 4.42 million (58.8%) Malaysian members in the formal sector have yet to reach the minimum savings level required to ensure adequate funds upon retirement," he said during the question-and-answer session in the Dewan Negara today.
Amir Hamzah was responding to a supplementary question from Senator Datuk Ng Keong Hsing regarding the official estimate of Malaysians expected to fall short of minimum retirement savings over the next 10 to 20 years. Ng also inquired about the government’s plans and fiscal mechanisms to address the issue of insufficient pension funds as citizens approach retirement.
To tackle this, the Minister highlighted several key initiatives:
Retirement Income Adequacy (RIA) Framework: A guideline designed to help members assess their financial status before deciding to withdraw funds, encouraging more prudent long-term financial planning.
Account Restructuring: The introduction of the Flexible Account to balance immediate needs with long-term goals.
Voluntary Contributions: Active promotion of programs such as i-Saraan (voluntary contributions for the self-employed), i-Simpan, and i-Topup (contributions exceeding the statutory rate).
Phased Withdrawals: Encouraging members to opt for monthly withdrawals rather than lump-sum payments to prevent premature depletion of retirement income.
The Minister also shared positive data regarding the growth of the EPF ecosystem as of December last year:
| Category | 2024 | Last Year | Growth |
| Active Employers | 614,563 | 640,391 | +4.2% |
| Formal Sector Employees | 7.9 million | 8.2 million | +3.3% |
| Annual Contributions | RM107.1 billion | RM120 billion | +12% |
China
