Malaysians Are Living Longer, Most Can’t Afford To

The Employees Provident Fund’s (EPF) new Retirement Income Adequacy framework sets the bar at RM390,000 for basic needs and RM650,000 for a reasonable retirement. Right now, 61% of active EPF members aren’t hitting even the lower target for their age.

Mohd Zuki Ali / EPF FB

In Brief

EPF views longer lifespans as a growth opportunity, requiring a whole-of-nation approach from governments, businesses, communities and individuals.
EPF's Retirement Income Adequacy framework sets Basic Savings at RM390,000 and Adequate Savings at RM650,000 for retirement security.
61% of active formal-sector EPF members fall below their age-based Basic Savings benchmark, with the government targeting 60% compliance by 2030.

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Longer lifespans could unlock new sources of economic growth, social participation and innovation as Malaysia moves towards becoming an aged nation, according to the Employees Provident Fund (EPF).

EPF chairman Tan Sri Mohd Zuki Ali said longevity should not be viewed solely as a challenge. He made the remarks in a statement on Tuesday (29 September).

The statement was issued in conjunction with the EPF International Social Wellbeing Conference 2026 (ISWC 2026), officiated by Finance Minister II, Senator Datuk Seri Amir Hamzah Azizan.

The two-day conference is jointly organised by EPF and the Ministry of Finance. Its theme is “The Long Horizon”.

EPF said the conference covers retirement adequacy, financial security, healthcare and long-term care, age-inclusive communities and intergenerational support. It will also look at technology that supports independent living among an ageing population.

Mohd Zuki said preparing for longer lives needs a “whole-of-nation approach” involving governments, businesses, communities and individuals.

How Much EPF Says Members Need

EPF’s Retirement Income Adequacy (RIA) framework, in effect since 2026, sets three savings levels.

Basic Savings, set at RM390,000, is meant to cover essential retirement needs. Adequate Savings is RM650,000, the level EPF considers sufficient for a reasonable standard of living.

EPF derives the Adequate level from the RM2,690 monthly spending of a single senior in the Klang Valley, multiplied across 240 months.

A third tier, Enhanced Savings, is set at RM1.3 million.

The framework encourages members to draw down their savings monthly over 20 years.

Where Members Stand Now

In a keynote speech read by Amir Hamzah, Prime Minister Datuk Seri Anwar Ibrahim said the share of active formal-sector members meeting the Basic Savings benchmark for their age rose from 36% in June 2025 to 39% in June 2026.

That leaves 61% of active formal-sector members below the benchmark for their age.

Anwar said too many Malaysians remain at risk of outliving their savings during a retirement that may last 20 to 25 years.

The government aims to raise the proportion to six in 10 members by 2030.

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