KUALA LUMPUR, Sept 226 — The Employees Provident Fund (EPF) will increase the withdrawal threshold for members with excess savings from 2026, allowing them greater flexibility in managing retirement funds as living costs and life expectancy continue to rise.
The pension fund said excess savings would refer to balances above RM1.1 million starting next year, compared with the current definition of RM1 million, the New Straits Times reported.
Members will be permitted to withdraw any amount beyond RM1.1 million in 2026, RM1.2 million in 2027, and RM1.3 million in 2028 under the revised limits.
EPF said the move is intended to match rising living costs and longer life expectancy while still safeguarding sufficient savings for members’ retirement years.
The fund also noted that more Malaysians are taking steps to improve their retirement readiness, with voluntary top-ups and additional contributions on the rise.
Under the new three-tier Retirement Income Adequacy framework, the savings target for members reaching age 60 will gradually increase to RM290,000 in 2026, RM340,000 in 2027 and RM390,000 in 2028.
As of last year, 37 per cent of active formal contributors had achieved the Basic Savings benchmark, up from 30 per cent in 2022.
Among those aged 51 to 55, the share meeting the benchmark grew to 42 per cent, while average savings for the 50 to 54 age group climbed from RM265,788 in 2022 to RM308,644 in 2024.
EPF credited these improvements to policy changes, including a May 2024 restructuring that increased the share of contributions allocated to the Retirement Account from 70 per cent to 75 per cent.
Voluntary contributions also jumped by 62 per cent last year, and the fund said it will continue strengthening its scheme to support members’ financial security in retirement.