EPF Calls For Pension System Reforms To Secure Lifelong Retirement Income
KUALA LUMPUR, Oct 1 (Bernama) -- Malaysia's pension system needs to evolve as people live longer and patterns of work change, with reforms needed to strengthen coverage, adequacy, equity and the sustainability of retirement income over a longer lifespan.
Employees Provident Fund (EPF) chief executive officer Ahmad Zulqarnain Onn said that to achieve this, he identified four priorities for Malaysia, beginning with the need to move from saving for retirement towards securing an income for life.
"We have a lump sum withdrawal system today, (and) that is a challenging system, but it's also a system that our members hold very dear to. So, one of the challenges that we face as a system is how do we move from saving for retirement to securing income for life," he said in his closing speech at the International Social Wellbeing Conference (ISWC) 2026, held from Sept 29 to 30.
As at June 2026, EPF reported that more than 26,000 members had opted for i-Emas upon reaching age 55 (more than 7,000 members) or 60 (more than 19,000 members).
He also stressed the need to close coverage gaps, particularly among informal-sector workers, daily wage earners and older workers, while supporting members throughout their lives rather than only at retirement.
This would require earlier engagement and greater collaboration across areas such as health, housing and elderly care, with changes introduced gradually and transparently to maintain public trust.
Ahmad Zulqarnain called for labour market reforms to improve wages for Malaysian workers, noting that the share of the country's gross domestic product (GDP) going to labour remains too low.
Moreover, he noted that longevity considerations must transcend any single policy area, encompassing labour markets, infrastructure, healthcare and digital systems, as well as community development, as populations continue to age.
Ahmad Zulqarnain said greater coordination is therefore needed to connect the different elements that determine how well people live longer lives.
"So the task now is to connect all these pieces together. Income security, health, care, work and community all shape how well people live longer lives," he said.
Ahmad Zulqarnain also emphasised that responsibility must be shared among individuals, families, employers, communities and the government.
"We also learned that the government will need to play a stronger role, especially in areas like long-term care and basic income security. Individuals also have a part to play by preparing early, saving consistently and making informed choices along the way," he added.
He said employers also have a role through the wages they pay, workplace flexibility and opportunities they provide for older workers to remain economically active.
Meanwhile, an earlier panel session on innovating retirement wellbeing, moderated by EPF chief digital technology officer Afhzal Abdul Rahman, brought together Naluri group CEO Azran Osman-Rani, Health Ministry Health Transformation Office CEO Dr Yap Wei Aun and Fourier Intelligence Pte Ltd's Owen Teoh.
The lively discussion centred on how Malaysia could better integrate healthcare, retirement savings, employers, insurers, technology providers, families and communities, which currently operate largely within separate systems.
Panelists highlighted the need for a more holistic approach as Malaysians live longer and require support spanning healthcare, income security, employment and elderly care.
Dr Yap cited the standardised voluntary private health insurance initiative as an example of bringing various stakeholders together, with greater emphasis on value-based healthcare, prevention and health outcomes rather than expenditure alone.
The conference concluded with a session by Alex Sheen, founder of the social movement “Because I Said I Would”, highlighting the power of personal commitment and accountability in creating meaningful change.
In the context of longevity and ageing, Sheen underscored the importance of caring for ageing parents, supporting one another and building communities where people can age with dignity and purpose.
He stressed that preparing for an ageing society goes beyond policies and systems to include individual choices, compassion and collective responsibility.
ISWC 2026, jointly organised by the EPF and the Finance Ministry, brought together global thought leaders, policymakers and industry experts to explore the future of retirement, ageing and social protection, against the backdrop of ageing populations worldwide.
Key areas of discussion included rethinking ageing and longevity, strengthening retirement, healthcare and care systems, building inclusive and intergenerational communities and harnessing innovation to support ageing societies.
-- BERNAMA