Malaysia’s retirement savings system may soon introduce a new way for families to build financial security across generations. The Employees Provident Fund (EPF) has announced plans to introduce i-Legasi, a new initiative that will allow parents to transfer part of their retirement savings directly to their children.
The announcement was made by EPF chief executive officer Ahmad Zulqarnain Onn during the fund’s 2025 dividend briefing. The scheme is designed for members aged 55 and above, allowing them to pass part of their savings to their children once they become eligible to withdraw their funds.
The move introduces a new perspective on retirement planning in Malaysia, recognising that financial security often extends beyond individuals to include family level wealth building.
What Is the i-Legasi Scheme
Under the upcoming i-Legasi scheme, EPF contributors who have reached 55 years old will be able to transfer part of their retirement savings directly into their children’s EPF accounts.
At present, parents who wish to help their children build retirement savings must first withdraw funds from their own EPF accounts and then make separate contributions to their children’s accounts.
The new initiative aims to simplify this process and make intergenerational transfers more convenient and structured.
EPF chief operations officer Sazaliza Zainuddin said the i-Legasi facility would allow members aged above 55 to add to their children’s EPF savings without being subject to the RM100,000 annual limit for voluntary top-ups.
“This is basically allowing those over 55, with balances exceeding adequate savings, to transfer part of their money to their children,” he explained.
“So currently, if we want to top up any money for our children, we have to pay from our bank account. This facility allows members to transfer part of their savings to their children without the RM100,000 limit.”
Further details on the scheme are expected to be announced soon.
The introduction of i-Legasi signals a broader shift in how retirement savings may be used in the future.
Rather than serving purely as a personal retirement fund, EPF savings could increasingly become a tool for structured wealth transfer within families.
EPF Declares 6.15 Percent Dividend for 2025
Alongside the announcement of i-Legasi, EPF also revealed its 2025 dividend rates.
The fund declared a dividend of 6.15 percent for conventional savings, with a total payout of RM67.1 billion. The Syariah savings dividend was also 6.15 percent, with a payout totaling RM12.5 billion.
While still considered a strong return, both dividend rates were slightly lower than the 6.3 percent declared in 2024.
EPF attributed the modest decline in dividend rates to two key economic factors.
The first factor was the slower performance of Bursa Malaysia’s benchmark index, the FBM KLCI. The index recorded 2.3 percent growth in 2025, compared with 12.9 percent growth in 2024. Since EPF holds significant investments in domestic equities, the slower market growth affected overall returns.
The second factor was the strengthening of the Malaysian ringgit against the United States dollar. While a stronger currency reflects confidence in the Malaysian economy, it also reduces the value of overseas investment income when converted back into ringgit.
Ahmad Zulqarnain explained that currency movements played a role in shaping the dividend outcome.
“The strengthening of the ringgit against the US dollar impacted the value in ringgit of our income from dollar assets. The ringgit was one of the best performing currencies in the world, gaining 10.2 percent.”
Sources: 1| 2
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