As of May 2026, 38.3 per cent of formal active Employees Provident Fund (EPF) members aged 18 to 60 have reached the “Basic Savings” target, according to Deputy Finance Minister Liew Chin Tong. This figure represents a measurable improvement from the 35.0 per cent of members who met this threshold by May 2025.
How EPF Savings Trends Are Shifting
The growth in retirement readiness is attributed to policy adjustments aimed at increasing voluntary contributions. According to Liew, the EPF has expanded the channels available for members to top up their accounts, which has directly contributed to the higher percentage of members hitting their savings targets. By May 2026, 3.04 million members had achieved their age-specific Basic Savings target, an increase from the 2.71 million members reported in the same period the previous year.
The “Basic Savings” target is a benchmark set by the EPF to ensure members have enough funds to support a modest retirement lifestyle. For a member aged 60, this target currently stands at RM390,000.
What Is the i-Legacy Programme?
To address inter-generational wealth transfer, the EPF launched the i-Legacy programme in February. This initiative allows older members with surplus retirement funds to transfer a portion of their savings directly into the EPF accounts of their immediate family members. Liew confirmed that since its inception, RM46.3 million has been transferred through this scheme.
The programme specifically targets the “sandwich generation”—individuals responsible for supporting both their children and aging parents. By formalizing these transfers, the EPF aims to build a stronger financial safety net for younger family members. As of the latest parliamentary update, 63 applications have been approved, benefiting 86 recipients.
Future Outlook for Retirement Security
The shift from 35.0 per cent to 38.3 per cent in one year suggests that voluntary top-up measures are gaining traction among the workforce. By enabling older generations to assist younger family members through i-Legacy, the policy creates a multiplier effect on long-term savings growth.
Review your annual EPF statement to see how your current balance compares to the Basic Savings target for your specific age group. You can use the official EPF portal to calculate your projected needs.
Frequently Asked Questions
What is the Basic Savings target?
It is the minimum amount the EPF estimates a member needs at age 60 to support a basic retirement lifestyle. The current benchmark for this target is RM390,000.
Who can benefit from the i-Legacy programme?
The programme is designed for immediate family members. It allows older EPF members to transfer surplus savings to their younger relatives to help bolster their financial security.
How does the EPF define “formal active members”?
These are individuals currently contributing to the EPF, aged between 18 and 60, who are participating in the formal economy.
Are you on track to meet your retirement goals? Check your latest EPF statement today and subscribe to our newsletter for more updates on financial planning and national pension trends.
