EPF: Malaysians Could Boost Savings By 40% If They Delay Retirement

By Lara Kramer • 09 Apr 2026 in News

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Ahmad Zulqarnain Onn. source: Harian Metro

Malaysians could boost their retirement savings by up to 40% but there’s a catch: staying in the workforce longer.

According to the Employees Provident Fund (EPF), working an additional five years can significantly grow savings, especially as people are living longer and dealing with rising living costs.

EPF CEO Ahmad Zulqarnain Onn said this estimate comes from projections that assume a 5% annual dividend and a 3% yearly salary increase. Under those conditions, extending your career by five years could raise your retirement funds by around 40%.

With Malaysia’s life expectancy expected to climb from 76 to 81 by 2050, the pressure to have enough savings for a longer retirement is only increasing. EPF stresses that staying employed longer can help individuals better manage both extended lifespans and higher expenses.

For now, there are no immediate plans to change the retirement framework.

The minimum retirement age remains at 60, while EPF members can still withdraw their full savings at 55, just as it has been since the fund was first introduced.

That said, Ahmad Zulqarnain noted that any future changes to retirement age or withdrawal policies would need careful consideration. Factors like health, type of work, and overall wellbeing would all play a role before any decisions are made.

To bridge the gap between withdrawal at 55 and retirement at 60, EPF introduced Akaun Emas, or the Golden Account. Contributions made after 55 are placed into this account and can only be accessed at 60, allowing savings to keep growing during those extra working years.

Ultimately, EPF is pushing the idea that retirement planning needs to start early. As Malaysians live longer, building and maintaining savings consistently will be key to staying financially secure later in life.