As the cost of living continues to rise, the Employees Provident Fund (EPF) has unveiled a range of policy and product updates, refined under Budget 2026 and set to take effect from 1 January 2026. These changes aim to strengthen retirement savings, expand social protection, and enhance the overall experience for members.
Here are some key changes to help members achieve a better quality retirement life:
EPF introduces new retirement savings benchmarks
The Retirement Income Adequacy (RIA) Framework will take effect on 1 January 2026, providing members with clearer benchmarks to assess their readiness for retirement.
The three benchmarks are:
- Basic Savings: RM390,000
- Adequate Savings: RM650,000
- Enhanced Savings: RM1.3 million
These benchmarks are intended to guide long-term retirement planning and improve savings discipline.
Image credits: Bernama
Investment rules updated to protect core retirement funds
EPF will realign the Members Investment Scheme with the RIA Framework to ensure essential retirement savings remain safeguarded.
Under the revised approach:
- Only savings above the Basic Savings threshold can be invested
- Minimum savings requirements will be adjusted progressively
- Core retirement funds will be better shielded from investment risks
New i-Saraan Plus scheme supports gig workers’ retirement
EPF will launch i-Saraan Plus, a voluntary contribution scheme created specifically for e-hailing and p-hailing drivers.
Image credits: Bernama
Key features include:
- Government matching incentives of up to RM600 per year
- A lifetime incentive cap of RM6,000
- EPF registration via participating platform providers
- Flexible contribution rates determined by the drivers
The scheme expands on the existing i-Saraan programme and aims to strengthen retirement protection for gig economy workers.
Extended i-Suri age limit enables longer savings period
The eligibility age for i-Suri will be extended from 55 to 60, aligning with Malaysia’s minimum retirement age.
For 2026:
- The government will continue matching 50% of annual contributions
- The annual cap remains at RM300
- The lifetime cap remains at RM3,000
This change allows women to continue contributing to their retirement savings for a longer period.
Image credits: Bernama
EPF adjusts withdrawal flexibility for high-balance members
To align with the Enhanced Savings benchmark, EPF will revise its withdrawal policy for members with savings exceeding RM1 million.
Key updates include:
- Greater flexibility for members below age 55
- A gradual increase in the excess withdrawal threshold
- The threshold will be raised to RM1.1 million in 2026
- The limit will increase by RM100,000 annually over three years
This phased adjustment balances financial access with long-term retirement security.
Voluntary contribution options renamed for clarity
EPF has refreshed the names of its voluntary contribution facilities to make them easier to understand:
- i-Simpan for self-contributions
- i-Topup for voluntary contributions above the statutory contribution rate
These options complement existing schemes such as i-Saraan, i-Sayang, i-Suri, and Akaun Persaraan Top-Up Savings.
Higher Hajj withdrawal limit eases pilgrimage planning
EPF will raise the Hajj Withdrawal limit from RM3,000 to RM10,000 for members who have received an official Hajj offer from Lembaga Tabung Haji.
Image credits: Bernama
Key improvements include:
- Withdrawals will continue to be made from Akaun Sejahtera
- Verification of Tabung Haji account balances will no longer be required
- Members can plan and manage Hajj-related expenses more conveniently
This adjustment reflects the current cost of performing the Hajj.
For more details and frequently asked questions, members are encouraged to visit EPF’s official website.
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