KUALA LUMPUR, Dec 12 — The Employees Provident Fund (EPF) has launched the Belanjawanku 2024/2025 guide and a new Retirement Income Adequacy (RIA) Framework to help Malaysians plan more effectively for retirement and better manage their monthly living costs.
In a statement released today, EPF explained that the updated Belanjawanku guide estimates the minimum expenses needed for a decent lifestyle, while the new RIA Framework introduces a three-tier savings system to ensure adequate income during retirement.
EPF added that the guide now covers 12 major cities across Malaysia, expanding beyond its initial focus on the Klang Valley. It will also be updated annually to reflect the latest living costs.
The RIA Framework, launching in January 2026, will help EPF members set retirement savings goals based on their desired lifestyle. The framework features a three-tier system to guide members in planning their savings and retirement income:
1. Basic Savings and Income — Covers essential retirement needs.
2. Adequate Savings and Income — Provides a reasonable standard of living during retirement.
3. Enhanced Savings and Income — Offers greater financial security and a higher quality of life.
For example, according to the Belanjawanku 2024/2025 guide, a single person needs around RM2,690 per month to cover basic living expenses in retirement. Based on this figure, the new savings targets under the RIA Framework are:
• Adequate Savings: RM650,000 (240 times the Adequate Retirement Income)
• Basic Savings: RM390,000 (60 per cent of Adequate Savings)
• Enhanced Savings: RM1.3 million (double the Adequate Savings)
The framework is designed to allow members to withdraw from their savings over 20 years — Malaysia’s average life expectancy. For example, with RM650,000 in savings, members can withdraw RM2,708 per month in the first year, which will grow to RM7,389 by the 20th year. For those with RM1.3 million in savings, monthly withdrawals start at RM5,417, increasing to RM14,779 by year 20.
The new Basic Savings level is set at RM390,000, a significant increase from the previous RM240,000. To help members adjust, this new target will be introduced gradually over the next three years:
• RM290,000 by January 2026
• RM340,000 by January 2027
• RM390,000 by January 2028
EPF also stated that the RIA Framework will be reviewed every three years, starting in 2029, to ensure the savings targets keep up with rising living costs, using the latest Belanjawanku data.
For members with savings above RM1 million, EPF will allow withdrawals based on the Enhanced Savings benchmark, with the threshold increasing by RM100,000 annually over the next three years. Starting in 2026, members can transfer 30 per cent of savings exceeding the Basic Savings amount to approved investment funds under the Members’ Investment Scheme (MIS).
As of October 2024, EPF reports that about 36 per cent of active members aged 55 have saved up to the current Basic Savings level of RM240,000.
While this percentage may decrease in the short term as the new benchmarks are phased in, EPF believes these adjustments are essential to ensure savings keep pace with the rising cost of living and the country’s changing retirement landscape.
EPF CEO Encik Ahmad Zulqarnain Onn emphasised that these initiatives are central to EPF’s mission to help Malaysians build a secure future.
“The Belanjawanku Guide and the RIA Framework are key to ensuring that our members can plan effectively for retirement. By providing an up-to-date understanding of monthly expenses and setting new savings benchmarks, we aim to guide Malaysians toward a fulfilling, secure retirement,” he said.
The Belanjawanku 2024/2025 guide can be downloaded for free on the EPF website. The Belanjawanku app is available via the Apple App Store, Google Play, and Huawei App Gallery.