SHAH ALAM, Feb 28 — The percentage of Employees Provident Fund (EPF) members who meet the basic target for their retirement savings has exceeded 40 per cent for the first time ever.

In newly-released figures today, EPF said 41.2 per cent of its active members — specifically Malaysians working in the formal sector — had in 2025 managed to reach RM240,000 in their EPF savings.

EPF CEO Ahmad Zulqarnain Onn said the retirement fund had been tracking this figure since 2007, and this is the “first time since we have been tracking the number” that more than 40 per cent were able to hit the Basic Savings target.

“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 here at Menara KWSP.

He said this was due to EPF members’ retirement savings building up, which he said should also result in an increase in the adequacy level of their retirement savings.

EPF’s Basic Savings target is meant as a guide for Malaysians to know how much they need to save up for their basic needs for the 20 years after their retirement.

The Basic Savings target was at RM240,000 for the years 2019 to 2025, but it has now been increased to RM270,000 for 2026.

Under EPF’s Retirement Income Adequacy (RIA) Framework which serves as a guide for EPF members, the targeted retirement savings that they can aim for by retirement age or by age 60 is:

• Basic Savings (RM390,000) for essential needs;
• Adequate Savings (RM650,000) for reasonable standard of living;
• Enhanced Savings (RM1.3 million) to support greater financial security and independence for a higher quality of life.

For a smooth transition, the Basic Savings at age 60 target will be increased gradually by RM30,000 every year, to go up from RM270,000 in 2026 to eventually reach RM390,000 in 2030.

Why were more EPF members able to achieve Basic Savings target?

Zulqarnain said the percentage of EPF members who met the Basic Savings target for their retirement funds had been gradually increasing previously, but said it had went down during the Covid-19 pandemic when EPF members were allowed to dip into their EPF savings.

“Then it went down during 2021 and 2022 during Covid, where EPF allowed for special withdrawals. 

“Now that there are no more special withdrawals, it’s starting to build up,” he said.

“We should see this building up over time, as more and more people participate in EPF, and as more people take advantage of the facilities that we have to voluntarily contribute,” he added.