EPF Calculator Malaysia 2025 for Retirement Planning

Retirement might feel far away for some employees, but as employers, we know the importance of planning early.

One of the easiest ways to get started is by using the EPF calculator retirement tool.

It gives employees a clearer view of how much they might have by the time they retire and whether it’s enough.

As HR professionals or business owners, helping your team understand this tool can be a small step that makes a big difference.

In this article, we will discuss the benefit of using EPF retirement calculator and other insights about EPF savings.

What is the EPF Retirement Calculator?

The EPF retirement calculator is a tool available on KWSP’s i-Akaun and also through third-party platforms that helps individuals estimate their total EPF savings by the time they retire.

This calculator gives a rough idea of how much money someone could have based on their current salary, contributions, and expected retirement age.

It's especially helpful for employees who are unsure if their savings are enough, and for freelancers or self-employed individuals who make voluntary contributions.

It gives employees a clear picture of their future, which helps them make smarter decisions today.

For example, they might consider increasing their voluntary contributions, adjusting their lifestyle, or thinking ahead about medical costs or education expenses for their children.

The calculator takes into account a few important things:

Employee’s current age
Monthly salary
How much both employer and employee contribute to EPF
Their expected retirement age
Projected dividend rates
Some versions also let you add annual bonuses or extra savings on the side.

All of this information works together to help the calculator estimate how much the employee might have by retirement and whether it will be enough to cover their future needs.

How to Use the EPF Retirement Calculator?

Many employees may not know that this calculator is easily accessible. Employers can guide them to the KWSP i-Akaun app or other third parties that also offer similar tools.

Access the calculator through KWSP’s i-Akaun app.
Enter personal details:
- Current age
- Monthly salary/Annual Income
- Employer and employee contribution rates
- Expected retirement age
- Projected dividend rate
- Annual bonus or voluntary contributions (if applicable)
- Salary increment rate
- Inflation rate
- Etc
The calculator will show a projected total savings amount by retirement, estimated yearly growth, and a visual chart to compare against the recommended target.
If the projected savings fall below the recommended amount, employees can try adjusting their inputs, like increasing voluntary contributions or changing their expected retirement age.

EPF Contribution Rates and Retirement Savings Estimation

Here are the main components that impact EPF savings:

Standard Contribution Rates

For employees under 60 years old, the standard contribution is 9% by the employee and 12% or 13% by the employer, depending on the employee’s monthly wage.

Age-Based Changes

After age 60, the contribution rates are lower.

Voluntary Contributions

Some employees may also choose to make additional voluntary contributions, especially if they’re self-employed or want to grow their savings faster.

These voluntary contributions like:

i-Saraan (for self-employed individuals or gig workers) & i-Simpanan (for those without formal employment)

can make a real difference over time. Even small monthly top-ups can lead to big results, thanks to the power of compounding and annual EPF dividends.

Dividend Growth

EPF pays annual dividends, usually between 4% and 6%, which help grow savings over time through compounding.

How Much EPF Savings Do You Need for Retirement?

KWSP recommends that Malaysians aim for at least RM600,000 in their EPF account by the age of 55 to retire comfortably.

But in reality, many people fall short of this target.

Living expenses in retirement are often underestimated.

Besides food and shelter, there are rising medical costs, unexpected emergencies, and daily expenses that don’t just stop after work ends.

Inflation also plays a big role. What costs RM1,000 today may cost much more in 20 or 30 years.

So while EPF savings grow with annual dividends, it’s important to check if those savings match the lifestyle the employee expects to have.

The retirement calculator helps identify this gap early. It doesn’t just show how much they’ll have, but also shows if that amount is likely to cover what they need.

EPF Withdrawal Options After Retirement

After employees reach retirement age, they can start accessing their EPF savings. Explain the withdrawal options so they can plan ahead with confidence.

Here are the main ways employees can withdraw their funds:

Full Withdrawal at Age 55: Rules and Procedures

Employees can make a full withdrawal of their EPF savings once they turn 55.

This includes all savings from Account 1 and Account 2, as long as they’ve stopped working or officially retired.

The process can be done online through the KWSP i-Akaun or at any EPF branch. They will need to prepare documents such as their IC and bank details.

Some employees may choose to take out everything in one go, especially if they have urgent financial plans but it’s important to remind them to plan carefully so the money lasts.

Partial Withdrawals: Monthly, Yearly, or Lump Sum

Not everyone chooses to take everything out at once.

EPF offers flexible withdrawal options where employees can take out a monthly amount, yearly payment, or request a lump sum based on their needs.

This is helpful for those who want to spread their savings across their retirement years instead of spending it too quickly.

It’s also useful for managing medical bills, living expenses, or supporting family members gradually.

EPF Withdrawal for Specific Purposes

Even before retirement, EPF members can withdraw part of their savings for approved purposes:

Housing: To buy a house or reduce their mortgage loan.
Education: To cover tuition fees for themselves or their children.
Medical: For treatment of critical illnesses at approved hospitals.
Investment: Under the EPF Members Investment Scheme, employees can transfer a portion of their savings into approved unit trust funds to potentially grow their retirement savings.

FAQ

How accurate is the EPF retirement calculator?

It’s only an estimate, but a useful one. The numbers depend on the inputs like salary, age, and contribution rates. While it can’t predict exact returns or future expenses, it gives a solid base for planning.

What is the minimum EPF savings recommended for retirement?

KWSP suggests RM600,000 by age 55 for a comfortable retirement, but personal needs may differ based on lifestyle, medical conditions, or family responsibilities.

How does the EPF dividend rate affect my savings?

The dividend rate determines how much your savings grow each year. Higher rates mean faster growth. That’s why understanding compounding is important when using the EPF calculator.

Can I withdraw my EPF before retirement?

Yes, for approved purposes like buying a home, covering education costs, or paying for medical treatment. There are specific conditions for each type of withdrawal.

Should I rely solely on EPF for retirement?

EPF is a strong foundation, but it may not be enough by itself. Some employees may need extra savings, insurance, or passive income to support the lifestyle they want after retirement.

Are your employees already planning for retirement?

Now’s the time to think ahead. Use the EPF Calculator Malaysia to help your team plan better — and make sure you’ve got the next wave of talent lined up.

Post your job openings on Maukerja and Ricebowl by AJobThing today, and start attracting skilled, local candidates ready to grow with your company.

Let’s build a future-ready workforce, together.