Malaysia aims for six of ten EPF members to reach savings of RM390,000 by 2030 - Anwar

KUALA LUMPUR, 29 SEPTEMBER 2026 —

Kuala Lumpur — Prime Minister Datuk Seri Anwar Ibrahim has announced a national target to elevate the Retirement Income Adequacy (RIA) level for six out of every ten members of the Employees Provident Fund (EPF) by 2030.

This strategic shift addresses a critical demographic and economic challenge facing Malaysia, where the traditional safety net is increasingly strained by an aging population and evolving labor market dynamics. The announcement, delivered during the 13th International Social Welfare Conference (ISWC) 2026, underscores the government’s intent to align social protection systems with the changing nature of work, moving beyond the conventional formal sector that has historically underpinned the nation’s social security architecture.

Speaking in a keynote address on Tuesday, Anwar highlighted that while progress has been made, the current trajectory remains insufficient. He noted that nearly four out of every ten EPF members are currently on track to meet the RM390,000 benchmark. However, he warned that a significant portion of the Malaysian population remains at risk of depleting their savings during their retirement years, which he estimated could last between 20 and 25 years.

The Prime Minister emphasized that this gap represents a substantial vulnerability for households planning for long-term financial security.

The Prime Minister’s remarks were read out by Second Finance Minister Datuk Seri Amir Hamzah Azizan, who attended the event alongside Federal Territories Minister Hannah Yeoh and EPF Chief Executive Officer Ahmad Zulqarnain Onn. The presence of senior cabinet ministers and the EPF’s top executive signaled the high-level political commitment to the agenda, which seeks to bridge the widening gap between current savings levels and the financial requirements of an extended retirement period.

Anwar stressed that the challenge is not merely one of financial literacy but of financial capability. He argued that asking individuals to plan for the year 2048, when their circumstances in the coming months may be uncertain, is a complex task. "For policymakers, retirement may be a 30-year plan. For households managing food, rent, and school expenses, the planning horizon may only extend to the end of the week," he said.

This observation highlights the disconnect between macroeconomic policy timelines and the immediate financial pressures faced by ordinary citizens, suggesting that systemic support is required to enable long-term planning.

The Prime Minister further elaborated that retirement security is fundamentally linked to income, quality employment, and the consistent ability to save. He asserted that the retirement agenda must move in tandem with the wage agenda, implying that without adequate and growing wages, the target of RM390,000 in savings will remain out of reach for many workers.

This linkage suggests that future policy measures may focus on wage growth and job quality as primary drivers of retirement adequacy, rather than solely on savings incentives.

In terms of immediate fiscal support, Anwar revealed that the government has allocated RM1.26 billion for the welfare of the elderly. This funding benefits 180,000 Malaysians who have reached the age of 60. Beyond direct financial transfers, the government is expanding activity centers to ensure that aging does not inevitably lead to social isolation.

This holistic approach aims to address both the economic and social dimensions of aging, recognizing that financial security is intertwined with social well-being and community engagement.

The Prime Minister also outlined a need for a tiered care system in Malaysia. He described a spectrum of support ranging from community assistance, nutritious food, and in-home care to daily care, residential care, and specialized elderly care for those who are frail or suffering from dementia. Anwar emphasized that access to these care services must be based on need rather than solely on the ability to pay.

"The government must lead by setting standards, strengthening the social safety net, and ensuring basic services are provided. However, sustained success requires a shared commitment," he stated, calling for a collaborative effort among various stakeholders.

EPF Chairman Tan Sri Mohd Zuki Ali reinforced the need for a multi-stakeholder approach, stating that preparation for the future requires joint efforts from the government, businesses, communities, families, and individuals. He argued that each entity plays a role in creating conditions that allow citizens to live well at every stage of life.

"This begins with recognizing the experience, knowledge, and contributions that each individual brings throughout their lifetime, as well as the support they may need as they age," Mohd Zuki said. He stressed that institutions and systems must evolve to enable people to work, learn, contribute, and remain connected across generations.

Mohd Zuki also highlighted the introduction of the i-Legasi initiative, which he said reflects the importance of intergenerational support. This mechanism allows eligible members with sufficient retirement savings to transfer a portion of their funds to the EPF accounts of their immediate family members. This feature is designed to strengthen retirement security across generations, allowing wealth and savings to be leveraged for the benefit of the broader family unit.

The initiative aligns with the cultural emphasis on family support in Malaysia while providing a formalized financial mechanism for such transfers.

The EPF’s RIA Framework, which underpins the new targets, complements these efforts by establishing clear benchmarks for Basic Savings, Adequate Savings, and Enhanced Savings. According to Mohd Zuki, this framework provides members with a clear picture of the relationship between their current savings and the monthly income those savings can support.

By defining these tiers, the EPF aims to offer transparency and guidance, helping members understand their financial standing and the steps required to improve their retirement prospects.

The 13th ISWC 2026, themed "The Long Horizon," was organized jointly by the EPF and the Ministry of Finance. The two-day forum, which concluded on Wednesday, brought together policymakers, industry leaders, and social welfare experts to discuss the future of social protection in Malaysia and the region.

The conference served as a platform to articulate the government’s vision for a more resilient and inclusive retirement system, one that is adaptable to the changing economic landscape and the increasing longevity of the population.

The announcement of the 2030 target and the associated policy directions marks a significant step in Malaysia’s social security reform agenda. By setting a concrete savings benchmark and linking it to broader wage and care policies, the government is attempting to address the structural challenges of an aging society.

The success of this initiative will depend on the effective implementation of the tiered care system, the expansion of welfare benefits, and the ability to foster a culture of long-term financial planning among the workforce. As Malaysia moves toward 2030, the focus will remain on ensuring that a larger proportion of the population can retire with financial dignity and security.