How Much EPF Savings Should You Have By 30?

And what can I do if I don't have enough?

To this day, retirement (though frequently discussed) is still a sensitive topic to talk about, especially when we consider the alarmingly low savings of many Malaysians.

Each person has a different aspirational lifestyle, and a specific number where they’ll say: “Yes, RMXX will be enough for me to retire comfortably.”

On the other hand, some choose to ignore—or simply refuse to acknowledge—the looming reality. They prefer to spend everything they earn, prioritizing the “now” over saving for a future that may never arrive.

“I’ll probably die before 60 anyway,” is the word that gets passed around with this group of people.

But regardless of which camp you belong to, there’s no denying that Malaysia is transitioning into an aging population.

Our life expectancy has been steadily increasing since the 1960s, from 58 years to 76.26 years, according to the World Bank’s latest data.

And whether or not you hope to live that long, the reality is—it may no longer be your choice.

Even if you don’t hope to live that long, the odds are against your favor.

This begs the question: How Much Savings Should I Have By 60 In Order To Comfortably Retire?

In December, EPF released the Retirement Income Adequacy (RIA) Framework, aimed at offering Malaysians a “comprehensive monthly expenditure guide” while revising the recommended savings levels to three tiers: Basic, Adequate, and Advanced.

The three tiers each support different lifestyles and retirement aspirations. EPF has also calculated the savings required for each age group to allow citizens to check if they’re on track to achieving the three savings thresholds.

Therefore, if you’re currently 30, your EPF savings should fall into one of these categories:

  • Basic - RM38,000

  • Adequate - RM47,500

  • Enhanced - RM85,400

Divided monthly, EPF’s Savings Goals will allow increasing withdrawals for the next 20 years post-retirement.

If you have Enhanced Savings (ie. RM1.3 mil by 60), you can withdraw RM5,417 per month during the 1st year, which will grow to RM14,779 per month by year 20.

How do I know if I’m doing well (financially) based on these numbers?

  • Excellent: Your EPF Savings alone have exceeded the Enhanced Category.

  • Good: Your combined savings (manual + EPF) surpassed the Enhanced Category.

  • Decent: Your EPF Savings have reached the Adequate Category.

  • ⚠️ Needs Work: Your EPF Savings fall below the Basic Category (ie. <RM38,000 by 30).

RM1.3 million may seem like a lot of money now, but it will be worth 46% less in 25 years. 😬

At an annual inflation of just 2.50%, EPF’s three retirement figures will increase to:

  • Basic - RM390,000 → RM720,000

  • Adequate - RM650,000 → RM1.21 million

  • Enhanced - RM1.3 million → RM2.41 million

In other words, the current sums will be worth 46% less, further stressing the urgency to save for retirement as soon as possible.

Relying on EPF alone is also no longer a viable strategy. If you’ve followed The Futurizts for some time, you’ll understand that I’m currently investing aggressively to generate better returns, all for a more comfortable retirement:

I revealed my retirement portfolio back in February. Click on the picture to watch the session.

But what if I started working later? Say at the age of 27?

I’m not going to sugarcoat things.

You’ll have to put your hard work in the right place, specifically in areas that will increase your personal knowledge to make yourself invaluable to your employer.

Typically, salaries depend on how replaceable you are. If it’s difficult to find anyone to replace you, then you’re at an advantage to negotiate a higher pay.

Examples of increasing personal knowledge:

  • A clerk learning Excel, PowerPoint, Word, etc.

  • A programmer learning other programming languages.

  • A marketer taking inspiration from viral posts to try out different types of content.

DISCLAIMER: The information contained in this newsletter is for informational and educational purposes only. Nothing herein shall be construed to be financial, legal, or tax advice. The opinions of this newsletter are solely that of the publisher.

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