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With Malaysia on track to become an ageing nation by 2043, the government's Belanjawan 2026 places strong emphasis on improving the welfare, financial security, and quality of life of senior citizens
Recognising the growing senior population, now officially defined as those aged 60 and above, Belanjawan 2026 introduces a series of targeted measures to support their wellbeing.
From higher welfare aid and special payments for retirees to better access to healthcare and lifelong learning, below is a breakdown of the key benefits announced by Prime Minister cum Finance Minister Datuk Seri Anwar Ibrahim.
1. Welfare assistance package
An allocation of RM1.26 billion has been set aside for the welfare of 180,000 senior citizens, including pocket money and socioeconomic aid to support their daily needs.
While Anwar did not specify an exact date, as this is part of the 2026 budget, the allocation is for the fiscal year 2026. These are typically ongoing monthly payments.
This assistance is generally channelled through the Social Welfare Department (JKM), likely via direct deposit into the recipients' bank accounts.
2. Increased allowance for KEMAS retirees
The monthly Bantuan Sara Hidup for 4,000 KEMAS contract retirees will be raised from RM300 to RM500, providing better financial relief for former community development officers.
The payment will likely be disbursed through the existing channels used to pay their current allowance, which is typically a monthly bank transfer.
Image for illustration purposes only.
Image via Home Care3. Special financial aid for government retirees
A one-off payment of RM250 will be given to all government retirees, including both pensioned and non-pensioned veterans, to help offset rising living costs.
The RM250 Special Financial Assistance for government retirees will be distributed in early March 2026. The timing is in conjunction with the celebration of Aidilfitri.
According to the official Belanjawan 2026 document, the assistance will be "channelled" or "distributed" typically via direct deposit into the bank accounts used for pension payments.
4. Special payment for veterans
Nearly 120,000 holders of the Pingat Jasa Malaysia will receive a one-time special payment of RM500 as recognition for their service to the nation.
The payments to veterans are usually handled by the Malaysian Department of Veteran Affairs (JHEV) and disbursed via direct bank-in to the accounts registered with the department.
5. General SARA payment
All Malaysians aged 18 and above, including senior citizens, will receive a one-off RM100 SARA payment under the government's cash aid initiative.
The payment will be channelled in mid-February 2026. This timing is to help with preparations for Hari Raya and the Chinese New Year celebrations.
It will likely follow the same payment structure as the current SARA scheme.
6. Expanded i-Suri scheme
The eligibility age for the i-Suri KWSP contribution matching scheme has been extended to 60 years, ensuring housewives and homemakers can continue to benefit from long-term retirement savings support.
The effective date is not specified, but it will be implemented as part of the 2026 budget's initiatives.
Eligible individuals can participate by making voluntary contributions to their KWSP accounts. The government's matching contribution is then managed and credited by KWSP.
7. Increased EPF withdrawal for Hajj
The withdrawal limit from the Employees Provident Fund (EPF) for performing the Hajj pilgrimage has been increased significantly to RM10,000 from the previous RM3,000, giving seniors more flexibility in financing their religious journey.
Members can apply for this withdrawal through the standard EPF application process for Hajj purposes, either online via the i-Akaun portal or at EPF branches.
8. Higher hemodialysis coverage by PERKESO
The Social Security Organisation (PERKESO) will raise its maximum coverage rate for hemodialysis treatments to RM170 per session, easing the financial burden of those managing chronic kidney conditions.
Previously, it was RM150.
The higher coverage will be applied directly to the bills from PERKESO's panel of dialysis centres, reducing the out-of-pocket costs for eligible patients.
9. Lifelong learning opportunities
Community Colleges will expand their Lifelong Learning Programs for vulnerable groups — including senior citizens — to encourage continuous learning and community participation.
Interested seniors should look out for announcements from their local Community Colleges regarding course schedules for 2026.
Senior citizens can participate by enrolling in the specific courses offered by the Community Colleges.
10. Entrepreneurship fund for retirees
The Retirement Fund (Incorporated) (KWAP) will provide RM20 million under a new micro-financing programme aimed at empowering retirees to start small businesses and remain economically active after retirement.
The fund is part of the 2026 budget. KWAP will likely announce the official launch and application period next year. Interested retirees will need to apply for the micro-financing through an application process that will be established and managed by KWAP.
