“As at end 2013, 69 per cent of contributors aged 54 years old have less than RM50,000 in savings. Let’s say upon attaining 55, a person spends frugally at RM800 per month, which is our poverty line income. Then that RM50,000 savings can only last five years,” he said after an EPF international seminar titled “Demographics Changes: Recognising the threats and opportunities” held, here, recently.
To date, life expectancy of the average Malaysian has increased to 75 years. The United Nations has projected that Malaysia will become an aged nation by 2030 when 15 per cent of its population comprise the elderly.
With many Malaysians living longer, there are concerns whether they have enough savings to enjoy retirement for the next 20 years.
In recent years, the government had taken steps to address this problem by extending the official retirement age to 60 and introducing the voluntary Private Retirement Schemes (PRS).
“People think they have more time than they actually do to deal with inadequate savings upon their retirement. We’re fast approaching an ageing population,” EPF chief executive officer Datuk Shahril Ridza Ridzuan said.
“A comprehensive study regarding this issue could plot and predict the social cost of an ageing population to the country 20 years from now. We need to ascertain if it can be funded through the personal retirement savings with EPF or pension system for government servants.”
Malaysians need to calculate how much social support that government needs to provide, including health spending and nursing homes, Shahril said, adding that at the organisation level, Bank Negara Malaysia, Department of Statistics and the Economic Planning Unit of the Prime Minister’s Department are sharing data on the challenges of an ageing population.
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