KUALA LUMPUR (June 17): As Malaysians are living longer, the Employees Provident Fund (EPF) has called for an overhaul of the country’s retirement systems to ensure financial security and social well-being.

The nation’s current systems — built for an era of shorter lifespans and linear careers, and most people remained in the same occupation or sector throughout their working years — no longer reflect how people live and work today, said EPF chief executive officer Ahmad Zulqarnain Onn.

“As we confront the realities of longer life expectancy, rising living costs, and changing work patterns, our retirement systems must evolve in tandem,” he said in his opening speech at the 12th International Social Wellbeing Conference 2025, themed Living to a Hundred: Are We Prepared?

The EPF has been calling for a comprehensive rethink of the retirement systems in a country where life expectancy is projected to reach 81 by 2050 from 75 years today to safeguard the retirement of future ageing populations.

By definition, Malaysia is already an ageing society — mostly internationally defined as having more than 7% of its population aged 65 and above. By 2044, 14% of the population is expected to be above 65 years, making Malaysia an ‘aged society’, according to the World Bank.

However, a large swath of the 30 million-plus population have inadequate savings for retirement, with more than six million people under the age of 55 having less than RM10,000 in their retirement accounts, according to the EPF’s data as of September 2023.

“Progress does bring with it additional responsibility,” said Ahmad Zulqarnain. “It is now our task to ensure that Malaysians are not only living longer but are also better prepared, financially and socially, for these additional years.”

Today’s generation of workers undergo multiple transitions throughout their lives as they shift careers, pursue new skills, and continuously reinvent themselves to stay relevant in a rapidly evolving and digital-driven world, he noted.

“By embracing these new life patterns, we can move towards systems that are inclusive, flexible, and better aligned with the realities of modern life, where adaptability and lifelong learning are just as critical as stable income and long-term savings,” he said.

Yet, nearly 40% of Malaysia’s workforce outside formal retirement protection, including gig workers, self-employed individuals and others in non-traditional work. “This is not just a policy gap, it is a social risk, and as longevity increases, the cost of inaction will rise exponentially,” he stressed.

“Our reform agenda is centred on modernising retirement solutions and expanding coverage so that the system reflects the growing diversity of work arrangements, life stages, and individual needs,” Ahmad Zulqarnain said.

Retirement security must also be viewed beyond savings, highlighting access to affordable healthcare, decent and fair wages, and inclusive digital infrastructure and policy frameworks that adapt to changing needs, he added.