Kuala lumpur: An estimated 60 per cent of Employees Provident Fund (EPF) members are projected to reach the basic savings level of approximately RM390,000 by the age of 60 by 2030, as stated by Finance Minister II Datuk Seri Amir Hamzah Azizan. He highlighted that, as of the end of 2025, 41.2 per cent, or 3.1 million, of active EPF members in the formal sector who are Malaysian citizens aged between 18 and 55 years, have already achieved the basic savings threshold.
According to BERNAMA News Agency, this leaves 4.42 million or 58.8 per cent of formal sector members, who are Malaysian citizens, yet to reach the minimum savings level necessary to ensure adequate retirement savings. Amir Hamzah addressed this issue during a question-and-answer session at the Dewan Negara, responding to a supplementary question from Senator Datuk Ng Keng Heng regarding the government's estimate of citizens unlikely to meet the sufficient minimum savings level by retirement age over the next decade or two.
Amir Hamzah emphasized the government's commitment, through the EPF, to control the erosion of basic savings due to early withdrawals by implementing the retirement income adequacy (RIA) benchmark. The RIA serves as a guide for assessing the adequacy of retirement savings, encouraging members to evaluate their savings before making withdrawal decisions, thus promoting prudent long-term financial planning.
He also mentioned ongoing measures to enhance savings, including account restructuring with the introduction of Flexible Accounts, promoting voluntary contributions, and active promotions like i-Simpan, i-Saraan, and i-Topup. Additionally, the EPF is intensifying its awareness campaign to discourage full or lump-sum withdrawals, which can adversely impact income after retirement, in favor of monthly payment withdrawals.
Furthermore, the number of active employers registered with the EPF grew by 4.2 per cent to 640,391 as of December 2025, up from 614,563 in 2024, while formal sector workers increased by 3.3 per cent to 8.2 million in 2025, compared to 7.9 million in 2024. This positive trend has contributed to the growth of annual contributions from Malaysian citizen EPF members, reaching RM120.0 billion in 2025, a 12 per cent increase from RM107.1 billion in 2024.