KUALA LUMPUR: The Employees Provident Fund's (EPF) newly launched retirement savings framework suggests that a retiree needs at least RM390,000 in savings to cover essential retirement needs.
For a higher benchmark, retirees should aim for at least RM1.3mil to enjoy an "enhanced" lifestyle post-retirement.
The Retirement Income Adequacy (RIA) Framework, which sets benchmarks for three tiers of savings - basic, adequate and enhanced - is based off Belanjawanku 2024/2025, the EPF's guide to monthly expenditure in retirement.
According to the EPF, the RIA Framework, which is set to be implemented in January 2026, allows members to set savings targets that reflect different retirement lifestyles and aspirations.
"This approach emphasises the importance of viewing EPF savings as a source of ongoing income, helping members to understand savings they will need to sustain themselves during retirement," said the pension fund in a statement.
The EPF noted that the basic savings benchmark of RM390,000 represents an increase from the previous RM240,000.
It said there will be a phased transition with the basic savings benchmark increasing gradually by RM50,000 annually over three years until it arrives at RM390,000 in 2028.
Due to the rising cost of living, the RIA Framework will be reviewed every three years starting from 2029, using updated data from the Belanjawanku findings.
