Malaysia - Many Malaysians unprepared for retirement

PETALING JAYA - Malaysians are increasingly vulnerable to being financially unprepared for retirement because of their longer life span against early retirement age, a study on retirement attitudes suggests.

"An astonishing 92 per cent of current retirees report they left the workforce by age 60," said the study entitled Balancing Tradition and Modernity: The Future of Retirement in East Asia.

The study tracked retirement behaviours and expectations across six East Asian countries.

The countries are China, Hong Kong, Singapore, South Korea, Taiwan and Malaysia.

"In China, the elderly will make up 30 per cent of the population by 2040, and 40 per cent in Hong Kong, Singapore, South Korea and Taiwan," it said.

"In Malaysia, they will still be under 20 per cent," said the study, which defined elderly as those who have retired.

The average retirement age for the six countries is 60 and above.

The study was based on a survey commissioned by the Centre for Strategic and International Studies (CSIS) and insurance company Prudential.

Malaysian Trade Union Congress (MTUC) president Mohd Khalid Atan said workers from the lowest salary group were possibly the ones who lacked financial strength to face retirement.

"Most of them started work with a very low salary and even lower EPF contribution. As time passed this amount will have increased, but it is still insufficient for their retirement plans," he said.

Cuepacs president Datuk Omar Osman said workers approaching retirement should also plan on how to maximise their retirement fund.

"One of our suggestions is to organise a three-month course for those retiring in five to ten years, so they can learn the proper ways to manage their finances during retirement," he said.

Omar said retirement preparation courses should include advice on healthcare management, which he said was a major concern among most retirees.

"It is of great importance that we have a well-drawn-up course to raise awareness on how to manage finances and healthcare matters after retirement," he added.

The Star/Asia News Network

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