PETALING JAYA: Young Malaysians support early retirement planning but stress that financial education and realistic saving habits are essential as the rising cost of living puts pressure on their finances.
Student Muhammad Aqil Hazrat Shaifful Haizam, 18, said automatic Employees Provident Fund (EPF) registration is a good starting point, but young people must be financially savvy.
“Registration alone is not enough if it is not accompanied by effective financial education.”
Student Nur Anisya Abdullah, 19, said young people could still build their savings gradually despite financial constraints.
“If they start saving little by little from an early age, those savings can grow over time and help reduce financial burden in the future,” she said.
Student Hani Umairah Zainuddin, 19, said EPF savings and bank deposits serve different purposes.
“Money in a bank account is usually used for daily needs, commitments and emergencies, while EPF is more for long-term financial preparation, particularly for retirement,” she said.
Teacher K. Anucia, 23, said young people should not sacrifice their immediate needs in an effort to save for retirement.
“They should not be burdened with the pressure to save to the point of neglecting their basic needs,” she said, adding that consistent saving within one’s means is more sustainable.
Preschool teacher Halida Lutau, 24, said young people, particularly those entering employment under the EPF scheme rather than a pension scheme, must take greater responsibility for their retirement planning.
“They need to have financial discipline, control their spending and consider additional savings according to their means,” she said.
For 17-year-olds Archana Kirti Murali and Jazz Leen, both are already planning to set aside part of their earnings as soon as they graduate, even if they initially work part-time.
Archana said contributing early would instil financial discipline and prevent impulsive spending on material possessions that offered only temporary satisfaction.
She also said EPF’s annual dividends make it an attractive option for young people to grow their savings over the long term.
“The 6.15% EPF dividend declared for 2025 is a competitive return compared with what other savings options offer,” she said.
Meanwhile, Jazz, an SPM candidate who has had an EPF account since she was 14, said the importance of retirement savings should not be overlooked simply because retirement seemed far away.
“The main reason my parents made me open an account so early was because of the dividends. It is a great way to save money for the future, although we have to remember that we cannot withdraw the money freely whenever we need it.
“We should set aside enough for our daily expenses and other immediate needs first,” she said.
Jazz intends to contribute a portion of her part-time salary to EPF, with the amount depending on her financial circumstances each month.
During the tabling of Budget 2027, Prime Minister Datuk Seri Anwar Ibrahim announced that all Malaysians will be automatically registered as EPF members upon turning 18 to encourage earlier retirement savings.
However, for 17-year-old Shan, who asked to be identified only by that name, said retirement planning might take a back seat while young people work out their financial priorities.
“At 18, you still do not really know what you will need your money for in the future, such as paying off student loans, buying a car or renting an apartment.
“I think retirement savings should become more of a concern when someone starts working full-time,” she said.
Shan added that she would prefer to begin contributing to EPF once she secured full-time employment, as this would give her a clearer picture of her income and expenses.
