EPF Calls For Pension System Reforms To Secure Lifelong Retirement Income

KUALA LUMPUR, Oct 1 – Malaysia’s pension system must evolve to adapt to increasing life expectancy and shifting work patterns, requiring structural reforms to improve coverage, adequacy, equity, and long-term sustainability.

Speaking at the closing of the International Social Wellbeing Conference (ISWC) 2026, held from September 29 to 30, Employees Provident Fund (EPF) Chief Executive Officer Ahmad Zulqarnain Onn outlined four strategic priorities, chief among them transitioning from lump-sum savings toward lifelong retirement income stream solutions.

“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,” Ahmad Zulqarnain stated.

As of June 2026, over 26,000 members chose the i-Emas option upon reaching age 55 (over 7,000 members) or age 60 (over 19,000 members).

Priorities for Strategic Reform

Ahmad Zulqarnain emphasized expanding social protection coverage to informal-sector workers, daily wage earners, and older workers while providing continuous support across various life stages rather than focusing solely on retirement age.

The key reform priorities identified include:

• Labor Market Wage Growth: Addressing the low share of gross domestic product (GDP) allocated to labor through improved wages and employment opportunities.
• Proactive Engagement: Connecting retirement planning early with essential social areas such as health, housing, and long-term care.
• Shared Responsibility: Balancing accountability across individuals, families, employers, communities, and the government to support aging populations.
• Systemic Coordination: Aligning health, work, community, and digital infrastructure to support longer lifespans transparently.

He added that while the government must strengthen its role in basic income security and long-term care, employers should contribute through flexible work environments and competitive wages, and individuals must save consistently.

Panel Insights on Integrated Healthcare and Social Care

An earlier session titled Innovating Retirement Wellbeing, moderated by EPF Chief Digital Technology Officer Afhzal Abdul Rahman, featured Naluri Group CEO Azran Osman-Rani, Health Transformation Office CEO Dr. Yap Wei Aun, and Fourier Intelligence Director Owen Teoh.

Panelists discussed integrating currently siloed sectors—including healthcare, retirement savings, insurance, technology providers, and community networks—to adopt a holistic approach toward longevity. Dr. Yap highlighted the standardized voluntary private health insurance initiative as a key example of shifting toward value-based, preventive care.

The conference concluded with a keynote by Alex Sheen, founder of the social movement Because I Said I Would, who highlighted personal accountability, family caregiving, and community responsibility as vital components of aging with dignity. Jointly organized by the EPF and the Ministry of Finance, ISWC 2026 convened global policymakers and experts to address future social protection and demographic shifts.

-NMT