AT A GLANCE
- EPF introduces i-Legasi, allowing members aged 55 and above with over RM650,000 in savings to transfer surplus funds to spouses or children.
- The i-Emas facility encourages monthly retirement withdrawals over lump-sum payouts to ensure long-term financial sustainability and continued dividend growth.
- A new Retirement Goal Calculator in the KWSP i-Akaun app helps Malaysians estimate future needs against current savings.
SHAH ALAM - For decades, most Malaysians viewed the Employees Provident Fund (EPF) as a straightforward retirement system; workers contribute monthly, employers add their share, dividends accumulate and the savings are eventually withdrawn after retirement.
But new initiatives introduced by EPF are beginning to reshape that traditional model. On May 11, EPF unveiled i-Legasi, a new facility allowing eligible members aged 55 and above to transfer part of their retirement savings directly into the EPF accounts of their spouses or children.
Alongside it, EPF also introduced i-Emas, a rebranded monthly retirement withdrawal programme, as well as a Retirement Goal Calculator inside the KWSP i-Akaun application.
Together, the initiatives reflect a broader shift in how retirement planning is being approached in Malaysia focusing not just on saving, but on long-term financial sustainability and intergenerational support.
Why EPF introduced i-Legasi
The new i-Legasi scheme comes amid concerns about retirement adequacy among Malaysians.
While millions contribute to EPF throughout their working lives, many still retire with balances considered insufficient for long-term living expenses. At the same time, there are also members who have accumulated savings beyond what they may realistically need during retirement.
Previously, members who wanted to help their children build retirement savings had to withdraw money into a personal bank account before making separate voluntary EPF contributions for family members. Those contributions were also subject to annual limits.
EPF chief executive officer Ahmad Zulqarnain Onn said the organisation is now trying to address retirement planning more holistically.
“As life expectancy rises, retirement planning must go beyond savings accumulation to focus on adequacy and sustainability.
“We are evolving to support our members not just in saving, but in making informed decisions to ensure their savings last a lifetime and to leave a legacy for their loved ones,” he said.
The move also reflects growing concerns that Malaysians may spend 15 to 20 years or more in retirement, requiring more careful management of retirement income.
How i-Legasi works
The i-Legasi facility is only available to EPF members who meet specific requirements.
To qualify as a transferor, a member must be at least 55 years old and possess savings exceeding RM650,000, which EPF classifies as the “Adequate Savings” benchmark under its Retirement Income Adequacy framework.
Only the amount above RM650,000 can be transferred.
For example, if a member has RM900,000 in EPF savings, only RM250,000 may be transferred under i-Legasi. The remaining RM650,000 must stay in the member’s account.
Under EPF’s framework, the savings benchmarks are divided into three categories:
- Basic Savings: RM390,000
- Adequate Savings: RM650,000
- Enhanced Savings: RM1.3 million
Recipients are limited to immediate family members, specifically legally registered spouses, biological children, stepchildren or legally adopted children. Recipients must also already be EPF members, are Malaysian citizens or permanent residents and are below 60 years old.
There is no maximum transfer limit as long as the transferor’s balance remains above RM650,000 after each transaction. Transfers can also be split among multiple family members.
Importantly, the transferred funds remain entirely within the EPF system. The money is moved directly from the transferor’s Akaun 55 or Akaun Emas into the recipient’s retirement account and remains subject to EPF withdrawal rules.
This means the scheme is not intended as a shortcut for cash withdrawals, but rather as a long-term retirement savings mechanism.
The seven-day cooling-off period
Applications for i-Legasi must be submitted physically at EPF branches. Members are required to provide identification documents as well as proof of family relationships, such as birth certificates, marriage certificates or adoption documents.
One notable feature is the seven-calendar-day cooling-off period. During that period, the transferor may still cancel the application at any EPF counter. However, once the seven days pass, the transfer becomes permanent and cannot be reversed.
Even the recipient cannot reject or reverse the transfer once it is finalised.
What is i-Emas?
Alongside i-Legasi, EPF also launched i-Emas, which is essentially a refreshed version of its existing monthly withdrawal facility for retirees.
Instead of withdrawing all retirement savings in one lump sum after turning 55 or 60, members can choose automated monthly payouts while leaving the remaining balance invested within EPF to continue earning annual dividends.
The concept aims to provide retirees with more stable long-term income while reducing the risk of rapidly exhausting retirement savings.
According to Zulqarnain, more than 21,000 EPF members have already adopted this withdrawal method after reaching retirement age. The rebranding appears aimed at encouraging more retirees to consider gradual withdrawals rather than fully cashing out their savings immediately.
Retirement Goal Calculator introduced
EPF also launched a Retirement Goal Calculator through the KWSP i-Akaun mobile application. The tool allows users to estimate future retirement needs based on projected lifestyles and expected expenses.
By comparing projected retirement costs with existing savings levels, members can better understand whether they are on track financially. The calculator is currently available through the App Store, Google Play and Huawei AppGallery.
A bigger shift in Malaysia’s retirement planning
Taken together, i-Legasi, i-Emas and the Retirement Goal Calculator indicate that EPF is gradually evolving beyond being merely a savings collection institution.
Instead, the organisation appears to be moving toward a broader retirement management model; one focused on sustainability, retirement income planning and family-based financial continuity.
For Malaysians with surplus retirement savings, i-Legasi now creates a formal pathway to strengthen the retirement security of spouses and children directly through EPF.
Whether these measures will significantly improve retirement preparedness nationwide remains to be seen, but they represent one of the clearest signs yet that Malaysia’s retirement system is adapting to longer lifespans and changing financial realities.