The EPF i-Legasi scheme lets contributors aged 55 and above transfer part of their retirement savings to their children’s EPF accounts. EPF i-Legasi scheme is a new policy introduced by the Employees Provident Fund during the 2025 dividend briefing, designed to let eligible contributors pass down savings to the next generation. EPF i-Legasi scheme is available only to those who are already eligible to withdraw their savings. EPF i-Legasi scheme aims to transform the way families approach intergenerational financial planning and retirement support. This article breaks down the steps, eligibility, benefits, and actions you can take around the EPF i-Legasi scheme.
Source: EPF to launch i-Legasi for parents to share savings with children | The Star
What is the EPF i-Legasi scheme? Sneak Peek from EPF chief executive during speaking at the pension fund’s 2025 dividend briefing
Credit Source: KWSP umum dividen 6.15 peratus, lebih rendah berbanding 2024 – Utusan Malaysia
EPF i-Legasi scheme allows eligible EPF contributors to move part of their funds directly to their children without first withdrawing cash outside the EPF system. EPF i-Legasi scheme is an intergenerational transfer scheme that supports family savings goals while keeping receipts inside the official retirement fund. EPF i-Legasi scheme applies only to contributors aged 55 and above who can already withdraw their balances according to EPF rules. EPF i-Legasi scheme lets parents send money from their EPF accounts to their children’s EPF accounts, avoiding separate top-ups. EPF i-Legasi scheme gives families a new way to plan finances for education, housing, or future needs.
Who will be eligible for the EPF i-Legasi Scheme?
The EPF i-Legasi scheme is open to contributors who reach the age of 55 and meet the standard criteria to withdraw EPF savings. contributors must have an active EPF account with eligible funds and must have reached full withdrawal age under EPF rules. When a member hits 55, they can withdraw much of their EPF savings and move funds under the EPF i-Legasi scheme. The EPF i-Legasi scheme does not apply to contributors below the age of 55 who are not eligible for full withdrawal.
“Currently, if we want to top up any money for our children, we have to pay from our own account. This scheme will allow members to transfer part of their savings directly to their children’s accounts,” EPF chief executive officer said on Saturday (Feb 28, 2026) via the Star.
EPF i-Legasi scheme involves direct transfer to children without cash disbursement outside the EPF framework. EPF clearly stated the scheme would be announced soon at an official briefing.
How the EPF i-Legasi scheme is expected to work
EPF i-Legasi scheme transfers funds from your account to your child’s EPF account once you meet eligibility conditions. EPF i-Legasi scheme uses the Member’s EPF dashboard once activated and allows parents to select how much to transfer into their child’s account, subject to EPF rules. EPF i-Legasi scheme’s specifics on maximum amounts and process steps will be outlined by EPF when the scheme launch date is confirmed. EPF i-Legasi scheme is designed to avoid the step of withdrawing savings and then depositing separately into a child’s account. EPF i-Legasi scheme makes the transfer inside EPF’s digital system, providing a clear record of transactions.
Why the EPF i-Legasi scheme Matters
EPF i-Legasi scheme matters because retirement savings become tools for family support beyond retirement age. EPF i-Legasi scheme lets contributors decide how much to keep for their retirement and how much to move to their child’s retirement fund. EPF i-Legasi scheme gives parents more control over savings distribution during their lifetime, versus only relying on nominations or wills. EPF i-Legasi scheme could help children meet financial milestones while preserving a parent’s long-term stability. EPF i-Legasi scheme expands the way EPF supports both retirement and family planning goals.
Differences Between EPF i-Legasi Scheme and Traditional Withdrawal
Before the EPF i-Legasi scheme, parents who wanted to help their children had to withdraw money and then deposit it outside the EPF platform. EPF i-Legasi scheme changes this by enabling direct transfers into a child’s EPF account within the EPF system. Traditional EPF withdrawal gives contributors full control of cash but does not link funds directly to a child’s retirement accounts. EPF i-Legasi scheme simplifies the process, making it easier to track savings passing to children. EPF i-Legasi scheme ensures funds remain inside Malaysia’s leading retirement and provident institution.
Benefits of Using the EPF i-Legasi Scheme
EPF i-Legasi scheme offers benefits for both parents and children:
- EPF i-Legasi scheme provides a cleaner method for passing savings within the EPF structure. Parents who use the EPF i-Legasi scheme keep pension tracking in one place and skip extra bank transfers.
- EPF i-Legasi scheme supports children’s future planning because funds go directly into their retirement accounts. Children may see compounding effects on their EPF savings earlier when parents use the EPF i-Legasi scheme.
- EPF i-Legasi scheme reduces paperwork and administrative friction relative to external transfers. With the EPF i-Legasi scheme, transactions are recorded inside the EPF ecosystem for clarity.
These benefits help families align retirement and intergenerational financial goals under one framework.
Tips for contributors to the EPF i-Legasi scheme
When the EPF i-Legasi scheme launches, log in to your EPF account to review eligibility and fund balances. Keep your EPF nomination up to date because the EPF i-Legasi scheme affects how savings move across generations. Review how much you want for your retirement before transferring funds via the EPF i-Legasi scheme, so you maintain a stable income after age 55. Use EPF dashboards or contact EPF service agents to understand how EPF i-Legasi scheme works step by step. The EPF i-Legasi scheme will require good planning to balance retirement needs and children’s financial support.
Disclaimer Note:
The EPF i Legacy scheme has been mentioned in recent media reports as an upcoming initiative by the Employees Provident Fund to allow contributors aged 55 and above to transfer part of their savings to their children’s EPF accounts. EPF officials, including the chief operating officer, have stated that full details and implementation plans are pending a formal public announcement and have not been finalised at the time of reporting. Readers should treat EPF i Legacy as a proposed policy that is subject to confirmation, official conditions, limits and launch timing by EPF before it becomes operational.
