The Employees Provident Fund (EPF) has just released its updated Belanjawanku 2024/2025 and the Retirement Income Adequacy Framework.
These tools provide Malaysians with essential benchmarks to plan for a comfortable lifestyle — whether you’re starting your career, raising a family, or heading into retirement.
These tools provide Malaysians with essential benchmarks to plan for a comfortable lifestyle — whether you’re starting your career, raising a family, or heading into retirement.
But here’s the burning question: Are you financially prepared for retirement? 😕😐
A Quick Look at Belanjawanku 👀
Belanjawanku is EPF’s comprehensive guide that breaks down monthly living expenses for different household types. It goes beyond basic survival and sets the bar for a reasonable standard of living.
For example, the latest guide highlights that a single elderly person requires RM2,690 monthly to maintain a reasonable standard of living in retirement. This figure underscores the financial reality for retirees, especially in urban areas like the Klang Valley.
The New Basic Savings Benchmark
EPF has also introduced a significant update: the Basic Savings benchmark, which is the minimum savings needed in your EPF account by age 55 to support a basic retirement.
This benchmark has increased from RM240,000 to RM390,000, phased in gradually over the next few years:
- RM290,000 by 1 January 2026
- RM340,000 by 1 January 2027
- RM390,000 by 1 January 2028
The phased transition gives contributors time to adjust their savings plans without undue stress.
Why This Matters Now ???
With life expectancy on the rise, Malaysians are looking at funding 20–30 years of retirement. According to EPF, only 36% of active members meet the current Basic Savings benchmark of RM240,000, and this figure is expected to decline further with the new RM390,000 target.
For retirees aiming to meet the “Adequate Retirement Income”, the gap between current savings and future needs is becoming more apparent.
How to fill your 'Retirement Gap'? 😕
According to licensed financial planner, Alex Yeoh, he reckoned that the best time to take action is forever now regardless of your age, even though you're still young (below age 30 perhaps?). Take the below steps as a guidance:
- Start Budgeting
Map out your current expenses and see where you can save more. Take Belanjawanku as a benchmark. - Boost Your EPF Contributions
Consider voluntary top-ups or maximizing employer-matching contributions where possible. - Diversify Your Income Streams
Think about increasing your income streams and to diversify your investments in unit trusts, robo-advisors, or property to grow your wealth. - Prepare for Inflation (including medical inflation 💣)
Ensure your savings strategy accounts for rising living costs. - Seek Expert Advice
A financial planner can help tailor a strategy to meet the new benchmark and your retirement goals.
Final Thoughts
Retirement planning isn’t a one-size-fits-all solution, but tools like Belanjawanku and the new Basic Savings benchmark provide a clearer roadmap. The phased transition to RM390,000 is a reminder that financial independence in retirement requires careful planning.
The earlier you start, the better your chances of not just meeting your needs but living the retirement you’ve always envisioned.
So, are you ready to meet the new Basic Savings benchmark? Let’s discuss in the comments!
😕😕😕😕😕😕😕😕😕😕😕😕😕😕😕😕😕😕😕😕😕😕😕😕
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