If you have more than RM1 million in your Employees Provident Fund (EPF) savings, the rules on withdrawing excess funds will change starting in 2026.

What is changing?

Under the new Retirement Income Adequacy (RIA) framework, EPF members below the age of 55 will be required to maintain higher minimum balances before they can withdraw any excess savings. These minimum thresholds will be increased gradually over three years:

• In 2026, members must maintain at least RM1.1 million before making any withdrawals
• In 2027, the minimum balance rises to RM1.2 million
• In 2028, the threshold increases further to RM1.3 million

Only savings above these amounts can be withdrawn.

Why EPF is making this change?

EPF says the adjustment is meant to strike a balance between allowing access to surplus funds and protecting members’ long-term retirement savings, especially in view of rising living costs. The RIA framework is designed to help Malaysians accumulate enough savings for a more secure and comfortable retirement.

How this affects you?

If your EPF savings exceed RM1 million, you will need to plan withdrawals more carefully to ensure your balance does not fall below the new minimum thresholds.

The gradual phased increase gives members time to adjust their financial plans without sudden disruption.

For members with high balances, EPF is placing greater emphasis on retirement security rather than immediate access to funds, while still allowing withdrawals once minimum savings levels are met.

What should you do next?

Members are encouraged to review their EPF balances, understand the new withdrawal limits for each year, and plan any future withdrawals accordingly to avoid breaching the minimum requirements.

Watch the video HERE!

Image Credit : KWSPMalaysiachannel (YouTube) , Astro Awani