(Kuala Lumpur, 16th) The Employees Provident Fund (EPF) has launched the new i-Legasi scheme, which is expected to provide much-needed financial planning support for Malaysia’s 'sandwich generation', as they often bear the responsibility of caring for elderly parents while raising children.
This scheme allows eligible members to transfer part of their retirement savings to immediate family members, such as a spouse or children, in order to support long-term family financial planning.
Dato’ Prof. Dr. Mohamad Nasir Mahalan, Deputy Vice Chancellor (Academic and International Affairs) of Universiti Malaysia Kelantan, pointed out that nowadays many working individuals not only have to prepare for their own retirement, but also have to care for elderly parents and children at the same time.
“The sandwich generation is increasingly common in Malaysia, especially among middle-income families. Therefore, many people are under financial pressure, physically and emotionally exhausted, and anxious about whether they can secure their own future while continuing to support their families.”
She told Bernama that initiatives such as i-Legasi could encourage people to discuss retirement and family financial planning earlier, while intergenerational support remains a deep-rooted part of Asian family values.
“In Asian societies, supporting parents and children is a deeply ingrained responsibility. This scheme transforms retirement planning from an individual burden into a responsibility shared by the family.”
Dr. Yeah Kim Leng, Professor of Economics at Sunway University, also agreed with this view. He said that i-Legasi could not only encourage early retirement planning but also foster a stronger sense of financial responsibility among the younger generation.
He emphasized that the scheme’s safeguard mechanism is very important to ensure that members’ retirement savings remain sufficient; at the same time, this scheme could reduce the economic burden on beneficiaries and provide them with additional avenues to improve their standard of living.
“The premise for this transfer is that EPF members must have sufficient savings to safeguard their personal financial security. In addition, EPF also offers a monthly withdrawal income option to further strengthen retirees’ financial security.”
Speaking on broader economic trends, he believes that due to an aging population, increased life expectancy, stagnant wages, and insufficient retirement savings, the number of people in Malaysia’s sandwich generation is expected to grow further.
He said that with the dependency ratio projected to continue rising over the next decade, the situation may become even more severe.
“With urbanization and changing lifestyles, living costs continue to rise, and the sandwich generation will find it increasingly difficult to maintain adequate emergency and retirement savings. This may lead to more severe elderly financial hardship and could even trigger an elderly poverty crisis.”
In addition, 41-year-old private sector employee Nur Laimi said economic pressure has always been a major challenge for her. She cares for her parents at home while raising three young children, especially when her family faces emergencies.
“It’s not that we don’t want to save, but there are so many urgent matters that must be prioritized. Any measure that can help families jointly plan for the future is a positive one.”
According to the i-Legasi scheme, EPF members aged 55 and above with a savings balance exceeding the 'adequate savings level' (RM650,000) may transfer part of the balance to a spouse or child.
Recipients must be below the national minimum retirement age of 60, and must be Malaysian citizens or permanent residents.