How it is calculated
Each year until the target age:
- New balance = balance × (1 + rate) + 12 × contribution + contribution × rate × 66 ÷ 12
The last part is the dividend on that year’s contributions, using a monthly approximation of the EPF dividend method. The projection is then compared with the three levels of the Retirement Income Adequacy (RIA) Framework, in force from 1 January 2026:
| Level | Savings at age 60 |
|---|---|
| Basic | RM390,000 (phased in: RM290,000 2026, RM340,000 2027, RM390,000 2028) |
| Adequate | RM650,000 |
| Enhanced | RM1,300,000 |
The Adequate level is based on RM2,690 a month for a single elderly person (Belanjawanku 2024/2025) over 240 months. The benchmark age is now 60, not 55. The extra monthly amount is the additional contribution that brings the projection to RM650,000. For a single year’s dividend, use the EPF dividend calculator.
Worked example
Age 55, target 60, RM50,000 balance, RM1,000 a month, 5.5% dividend:
- Projected at age 60: RM134,009.37, below the Basic level
- Shortfall to the Adequate level: RM515,990.63
Starting from RM0 with RM1,000 a month for 30 years at 5.5%: RM891,137.47, above the Adequate level (RM650,000) and below the Enhanced level.
Why your number may differ
This is a projection in future (nominal) ringgit, not adjusted for inflation, not financial advice. Actual dividends change every year and are not guaranteed, salaries and contributions usually rise, and withdrawals reduce the balance. EPF’s own assumptions for the RIA framework may differ.