KUALA LUMPUR, Dec 13 — The Employees Provident Fund (EPF) introduced the Belanjawanku 2024/2025 and Retirement Income Adequacy (RIA) Framework yesterday, to provide Malaysians with a clear guide on monthly expenses and recommended savings targets.

Here are some things you should know about the Belanjawanku 2024/2025, according to EPF:

1. Why do we need the Belanjawanku guide?

The Belanjawanku Guide is a simple spending guide that shows the estimated minimum monthly costs needed for Malaysians from all kinds of households — whether you’re single or a senior citizen — to live comfortably.

It’s based on actual spending habits in 12 major cities across Malaysia, giving realistic and helpful benchmarks to improve your financial planning.

You can then use this guide to track your monthly expenses, manage your commitments, and set aside emergency funds for unexpected situations.

2. So how does it help with financial planning?

The Belanjawanku Guide makes it easier to manage your money by showing the estimated monthly expenses for different types of households.

It breaks spending into key areas like housing, food, and transport, helping you focus on essentials and find ways to save.

You can adjust the guide to suit your lifestyle and needs. By comparing your actual spending with its suggestions, you’ll spot where you might be overspending and learn how to budget better.

Updated regularly to reflect the rising cost of living, the guide also helps you plan for inflation and future financial challenges. It’s a practical tool to build smart money habits and stay in control of your finances.

4. How does Belanjawanku estimate how much I require for these?

• Housing – For a single person, costs are based on renting a fully furnished room. For couples and families, it’s calculated using the lower amount between house rent or mortgage payments. These estimates assume the home is within 30 km of the city centre.
• Transport – This covers vehicle loan repayments, fuel, parking fees, and highway tolls. It’s calculated for daily travel to work and other activities within 30 km of the city centre. Annual costs like road tax, insurance, and vehicle maintenance are counted as one-off expenses, divided by 12 for monthly budgeting.
• Utilities – This includes monthly bills for water, electricity, phone, internet, data plans, and Astro TV. These expenses are for personal or family use.
• Discretionary spending – This covers things like supporting parents, holidays, sports, entertainment, family insurance or takaful, and other personal priorities. Since these aren’t regular costs, they’re calculated by dividing the yearly total by 12.

The Belanjawanku Guide will be made available on the EPF website, or the website of Social Wellbeing Research Centre, University of Malaya.

How about the RIA framework?

1. What is it anyway, and how will this affect me?

The RIA is a three-tier framework that serves as a guide to how much saving is required for a comfortable retirement. It will take effect on January 2026, and gradually be updated every year.

In short, RIA provides new thresholds on how much your savings should be — labelled as Basic, Adequate, and Enhanced.

Have more than enough for Basic saving? Then you can diversify your investment, by transferring 30 per cent of the surplus to an approved fund of your choice.

Have more than RM1.3 million threshold for Enhanced saving? Then you have greater options to manage your wealth.