Entering 2026, a new chapter for Malaysia’s retirement system officially began, as the Employees Provident Fund (EPF) rolled out a wide-ranging set of policy and product enhancements aimed at strengthening retirement adequacy, expanding social protection and improving the overall member experience.
2026 Strategic Shift
The changes, which took effect on Jan 1, 2026, were first announced under Budget 2026 and are designed to reflect evolving work patterns, rising living costs and the growing need for flexible yet protected retirement savings.
Higher Haj Withdrawal Limit, Simpler Process
Among the most notable updates is the increase in the haj withdrawal limit from RM3,000 to RM10,000 from Akaun Sejahtera, providing greater financial support for members who have received offers to perform the haj.
At the same time, EPF has removed the requirement to verify Tabung Haji savings balances, streamlining the application process and allowing members to plan their pilgrimage more efficiently.
New i-Saraan Plus For Gig Workers
To address the realities of the gig economy, EPF has introduced i-Saraan Plus, a voluntary contribution scheme tailored specifically for e-hailing and p-hailing drivers.
Under this scheme, eligible drivers can receive a higher government matching incentive of up to RM600 per year, capped at RM6,000 over a lifetime. Participating platform providers will register drivers as EPF members and facilitate contribution deductions at rates chosen by the drivers themselves.
The scheme builds on the existing i-Saraan, which offers matching incentives of up to RM500 annually, capped at RM5,000 over a lifetime.
Extended i-Suri Support For Housewives
Support for housewives has also been enhanced. The eligibility age for i-Suri has been extended from 55 to 60, aligning it with Malaysia’s national minimum retirement age.
The government will continue to match 50% of annual contributions, capped at RM300 per year and RM3,000 over a lifetime, ensuring continued retirement protection for women who step away from formal employment.
RIA Framework Now In Force
A major structural shift comes with the formal implementation of the Retirement Income Adequacy (RIA) Framework, which introduces three benchmark savings tiers to guide retirement planning:
- Basic Savings: RM390,000
- Adequate Savings: RM650,000
- Enhanced Savings: RM1.3 million
These tiers serve as reference points rather than mandatory targets, helping members better understand their long-term retirement readiness.
Changes To High-Balance Withdrawals And Investments
In line with the Enhanced Savings tier, EPF has adjusted its policies for members with large balances in 2026.
For members below age 55, the threshold for withdrawing excess savings above RM1 million will be raised gradually by RM100,000 each year over three years, starting at RM1.1 million in 2026, RM1.2 million in 2027, and RM1.3 million in 2028.
The Members Investment Scheme (MIS) has also been aligned with the Basic Savings level, with eligibility thresholds revised in stages to ensure that funds used for investments do not undermine members’ core retirement needs.
Refreshed Voluntary Contribution Options
To encourage greater self-driven savings, EPF has refreshed its voluntary contribution branding:
- i-Simpan for self-contributions
- i-Topup for voluntary excess contributions above the statutory rate
These complement existing options such as i-Saraan, i-Sayang and i-Suri, giving members more flexibility in managing their retirement journey.
EPF 2026 Changes: A Shift Toward Long-Term Resilience
According to EPF, the measures that came into force in 2026 reflect a careful balance between flexibility and long-term protection, particularly in the context of rising living costs and changing employment patterns.
Members are encouraged to review the updated policies and assess how the new savings tiers and contribution options fit into their personal retirement plans. Further details and FAQs are available on EPF’s official website.
Sources: 1| 2
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