KUALA LUMPUR: The Employees Provident Fund (EPF) announced that only 36 per cent of its active members in formal jobs have saved enough to meet the required basic savings target, which is set at RM240,000 by age 55.
The numbers are as at October 2024.
"While this percentage may be impacted with the new benchmarks in the medium term, the adjustments are essential to help members' savings keep pace with the rising cost of living and the current retirement age in Malaysia," EPF chief executive officer Ahmad Zulqarnain Onn said in a statement today in conjunction with the launch of the Retirement Income Adequacy (RIA) framework and Belanjawanku 2024/2025.
The RIA which kicks off in 2026, is a new three-tier framework anchored on the adequate retirement income as determined by Belanjawanku from time to time.
It sets a basic savings requirement of RM390,000, adequate savings at RM650,000 and enhanced savings at RM1.3 million, for retirees.
"The Belanjawanku Guide and RIA framework are cornerstones to EPF's purpose in building a better retirement future for all Malaysians. The guide helps average Malaysians navigate the challenges in managing household expenses while the EPF establishes a strong foundation for building adequate retirement savings," Ahmad Zulqarnain said.
"By offering a comprehensive view of monthly expenditure and introducing new savings benchmarks, we aim to guide our members toward achieving a dignified and fulfilling retirement. These initiatives not only underscore EPF's commitment to adapting to evolving socioeconomic realities but also reflect our objective to stay relevant and responsive to changing times. Our goal is to ensure that no Malaysian is left behind in planning for a secure and meaningful future," he added.