KUALA LUMPUR — The Employees Provident Fund (EPF) will increase the withdrawal threshold for members with excess savings from 2026, allowing them greater flexibility in managing retirement funds as living costs and life expectancy continue to rise.

The pension fund said excess savings would refer to balances above RM1.1 million starting next year, compared with the current definition of RM1 million, the New Straits Times reported.

Members will be permitted to withdraw any amount beyond RM1.1 million in 2026, RM1.2 million in 2027, and RM1.3 million in 2028 under the revised limits.

EPF said the move is intended to match rising living costs and longer life expectancy while still safeguarding sufficient savings for members’ retirement years.

The fund also noted that more Malaysians are taking steps to improve their retirement readiness, with voluntary top-ups and additional contributions on the rise.

Under the new three-tier Retirement Income Adequacy framework, the savings target for members reaching age 60 will gradually increase to RM290,000 in 2026, RM340,000 in 2027 and RM390,000 in 2028.

As of last year, 37 per cent of active formal contributors had achieved the Basic Savings benchmark, up from 30 per cent in 2022.