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For the first time ever, more than 40% of active Employees Provident Fund (EPF) members have reached the basic savings target for retirement
According to Malay Mail, newly released figures show that 41.2% of active EPF members — specifically Malaysians working in the formal sector — managed to accumulate RM240,000 in their EPF accounts in 2025.
EPF chief executive officer Ahmad Zulqarnain Onn noted that the fund has been tracking this figure since 2007, and this is the first time more than 40% have surpassed the Basic Savings threshold.
"We know we have a lot of work to do towards this, but directionally I think we are moving in the right direction," he said in a media briefing at Menara KWSP.
The EPF Basic Savings target serves as a benchmark for how much Malaysians need to cover monthly expenses for 20 years after retirement
Under EPF's Retirement Income Adequacy Framework, members are guided by three savings tiers:
– Basic Savings (RM390,000) – to cover essential needs
– Adequate Savings (RM650,000) – for a reasonable standard of living
– Enhanced Savings (RM1.3 million) – for greater financial security and higher quality of life
The Basic Savings target, set at RM240,000 in 2025, has been increased to RM270,000 for 2026 and will rise by RM30,000 per year until reaching RM390,000 in 2030.
Zulqarnain added that the percentage of members reaching the Basic Savings target had been gradually increasing prior to the COVID-19 pandemic but dipped when special withdrawals were allowed
"Now that these withdrawals are no longer allowed, savings are starting to build up," he said, noting that this growth should improve the overall adequacy of retirement funds.
He also highlighted the role of voluntary contributions, saying, "We should see continued growth over time as more people participate in EPF and take advantage of voluntary contribution options."
