Prime Minister Datuk Seri Anwar Ibrahim revealed that nearly 4 out of 10 Employees Provident Fund (EPF) members are currently on track to hit the crucial Basic Savings benchmark of RM390,000 by the age of 60. While this shows progress, the government stresses that the target must be aggressively scaled up to reach 6 out of 10 members by 2030.
According to Harian Metro, Anwar said this development reflects progress in efforts to strengthen retirement income adequacy. However, many Malaysians still face the risk of exhausting their savings during retirement, which can last between 20 and 25 years.
Ensuring savings last through retirement
Speaking at the International Social Wellbeing Conference (ISWC) 2026, with his speech delivered by Finance Minister II Datuk Seri Amir Hamzah Azizan, the Prime Minister highlighted that retirement security cannot be viewed solely through the total lump sum collected, but rather on how sustainably that money can provide a stable livelihood over decades.
“The question is not simply how much we accumulate, but how those savings can support a reliable income throughout retirement,” he said.
He added that Malaysia’s changing demographics, having officially become an ageing society in 2021, mean retirement planning must evolve alongside rising life expectancies.
With those aged 65 and above projected to make up more than one in 10 Malaysians by 2035, he stressed the need to ensure that longer lifespans are matched by adequate financial preparedness and healthy years of life.
Government expands support for workers and senior citizens
With millions of Malaysians now working outside traditional formal employment, Anwar said the nation’s social protection systems are undergoing vital transformations.
He explained that the government is actively expanding coverage for non-traditional workers through targeted initiatives:
- i-Saraan: Provides a structured avenue for self-employed workers to build retirement savings, supported by government incentives.
- i-Saraan Plus: Strengthened to provide greater support for e-hailing and p-hailing drivers.
- i-Suri: Eligibility expanded to recognise women engaged in unpaid care work, acknowledging their contribution to the well-being of families and communities.
“The Government is also paying attention to the care of older people, with RM1.26 billion allocated for their welfare, which is expected to benefit 180,000 senior citizens, while also expanding activity centres to help reduce social isolation,” he said.
Retirement security goes beyond savings
He then said that the retirement security must also take into account how savings can be used sustainably, as spending too quickly could leave individuals without sufficient savings, while being overly cautious with spending could limit the retirement years they have worked and planned for.
“Malaysia’s challenge is not simply to increase the amount of retirement savings, but to ensure that people have the income, social protection and care support needed to navigate longer lifespans with financial security and dignity,” he said.
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