Experts say allowing EPF accounts from age 14 could foster long-term saving, but must be paired with real financial education to be effective.
PETALING JAYA: Allowing Malaysians to open an Employees Provident Fund (EPF) account from as early as age 14 could reset how the next generation thinks about money – turning retirement into an early-life habit, say experts.
UniKL Business School economic analyst Assoc Prof Dr Aimi Zulhazmi Abdul Rashid said the move has the potential to hardwire the habit of saving early, stressing that it would only deliver real impact if backed by meaningful financial education.
He said financial literacy should begin well before the teenage years, with primary school pupils introduced early to how wealth is generated, grown, protected and eventually distributed, and not merely told to put money aside.
“This scheme also sits alongside other savings options offered by government-linked investment companies such as Permodalan Nasional Berhad and Tabung Haji as well as products from private financial institutions.
Financial expert Prof Datuk Dr Nik Maheran Nik Muhammad described the move as a step towards strengthening long-term financial resilience.
She said it represents a shift from planning for retirement reactively to actively building wealth, which is particularly relevant today as some teenagers are already earning through the digital and gig economy.
“Even modest contributions made consistently can grow substantially over time, giving young contributors a significant head start in building retirement adequacy and financial security.”
Nik Maheran said if paired with proper financial education, an EPF account could help teens develop discipline, practice delayed gratification and think long-term, turning abstract financial concepts into real-life experience.
“Teens should start small but remain consistent, treating EPF as untouchable long-term savings.”
To encourage participation, Nik Maheran suggested that EPF could introduce low minimum contributions of RM10 to RM20, with flexible auto-debit options, allowing families to save steadily without financial strain.
“Parents who co-contribute or match their children’s savings should be considered for government incentives or tax deductions to increase participation.”
“Overall, this initiative should be positioned not merely as an administrative reform but also as part of a broader national effort to cultivate a culture of early financial responsibility.
“With the right education, incentives and digital tools, it could help shape a generation that values long-term wealth and financial independence.”
Universiti Putra Malaysia Putra Business School associate professor Dr Ida Md Yasin said opening EPF accounts for children as young as 14 may deliver little educational value if parents are the ones funding them.
“Children only learn when they save money they earn or receive themselves – even small amounts kept in an account under their own name.
“If the funds come directly from parents or the EPF, they are not learning how to manage money. They simply know the money exists.”
“At 14, most children are not working. So, the purpose of saving a portion of earnings in EPF does not apply. If we want to encourage financial literacy in youths, regular banks are sufficient for them to start saving and learning about money management.”
Ida said parents could still contribute but early EPF accounts may not provide the intended educational value.
In Malaysia, the employment of children and young persons is governed by the Children and Young Persons (Employment) Act 1966, which was updated in 2019.
Under the law, children below 15 may work from the age of 13 in light duties that do not compromise their health or schooling, while young persons are defined as those aged between 15 and 17.
