Are you financially ready for retirement? For many Malaysians, that question sparks uncertainty. But with the Employees Provident Fund’s (EPF) newly launched Belanjawanku 2024/2025 Guide and the innovative Retirement Income Adequacy (RIA) Framework, preparing for your golden years just got a whole lot easier—and more achievable.
Here’s everything you need to know about these game-changing initiatives and how they’ll empower you to plan smarter, save better, and retire happier.
Belanjawanku 2024/2025: Your Budgeting Lifeline
Developed in collaboration with the Social Wellbeing Research Centre (SWRC) at Universiti Malaya, the Belanjawanku Guide is like a personal financial compass, pointing Malaysians toward the minimum monthly expenses needed for a comfortable lifestyle. Whether you’re a single individual or managing a family, this guide provides tailored budgeting insights that reflect the realities of everyday life.
Initially focused on the Klang Valley area, the guide now encompasses 12 major cities nationwide, offering a more comprehensive overview of living costs throughout Malaysia. This expansion ensures that individuals and families have access to relevant financial planning information tailored to their specific locales.
The RIA Framework: Your Retirement Savings GPS
If Belanjawanku is your financial compass, the Retirement Income Adequacy (RIA) Framework is your GPS to retirement savings. Launching in January 2026, this framework introduces a three-tier savings system to help Malaysians target their savings goals based on the retirement lifestyle they desire.
The Three Tiers of Retirement Goals
- Basic Savings and Income: Covers essential needs—think food, utilities, and healthcare.
- Adequate Savings and Income: Provides a modest yet comfortable lifestyle.
- Enhanced Savings and Income: Caters to those wanting greater financial security and a higher quality of life.
Why It Matters
For instance, according to the Belanjawanku 2024/2025 guide, a single individual requires approximately RM2,690 per month to meet basic living expenses in retirement. Based on this figure, the RIA Framework suggests the following savings targets:
- Adequate Savings: RM650,000 (240 times the adequate retirement income)
- Basic Savings: RM390,000 (60% of adequate savings)
- Enhanced Savings: RM1.3 million (double the adequate savings)
These targets are designed to allow members to withdraw from their savings over a 20-year period, aligning with Malaysia’s average life expectancy. For example, with RM650,000 in savings, members can withdraw RM2,708 per month in the first year, with the amount increasing to RM7,389 by the 20th year. For those with RM1.3 million in savings, monthly withdrawals would start at RM5,417, rising to RM14,779 by year 20.
Making the Transition Easier
EPF knows change can feel overwhelming, especially when savings targets increase significantly. That’s why the shift to RM390,000 in Basic Savings will be phased in:
- RM290,000 by January 2026
- RM340,000 by January 2027
- RM390,000 by January 2028
And that’s not all. Starting in 2026, members with savings above RM1 million can transfer 30% of their excess savings into investment funds under the Members’ Investment Scheme (MIS), offering the potential for even greater returns.
Why You Should Care: The Current Reality
As of October 2024, only 36% of EPF members aged 55 have reached the current Basic Savings benchmark of RM240,000. This paints a stark picture of the financial readiness of Malaysians heading into retirement.
By introducing these new benchmarks and planning tools, EPF is not just raising the bar—it’s raising the odds for Malaysians to achieve financial freedom.
EPF’s Vision: Secure, Fulfilling Retirements for All
Encik Ahmad Zulqarnain Onn, CEO of EPF, sums it up best:
“The Belanjawanku Guide and the RIA Framework are key to ensuring that our members can plan effectively for retirement. By providing an up-to-date understanding of monthly expenses and setting new savings benchmarks, we aim to guide Malaysians toward a fulfilling, secure retirement.”
What’s Next? Start Planning Today with Belanjawanku!
The Belanjawanku 2024/2025 guide is free to download on the EPF website. For on-the-go financial planning, check out the Belanjawanku app—available on the Apple App Store, Google Play, and Huawei App Gallery.
Whether you’re just starting your career or nearing retirement, these tools are your ticket to a financially secure future. After all, retirement isn’t just about stopping work; it’s about enjoying life without financial worries.
So, why wait? Start planning, start saving, and let EPF help you build the future you deserve.
Source: here
Related articles:
Beyond Expectations: EPF Dividend Could Surpass 6% This Year
How a 35-Year-Old Woman Saved Nearly RM2 Million in EPF
Discussion about this post