KUALA LUMPUR: The Employees Provident Funds (EPF) data shows that one in four members exhaust their EPF savings within five years after reaching withdrawal age, Prime Minister Datuk Seri Anwar Ibrahim said.
Speaking at the launch of the International Social Well Being Conference (ISWC) today, he said that the lump-sum nature of the EPF benefit will result in many Malaysians being unable to maintain a reasonable standard of living during retirement or to manage longevity risks.
Additionally, he said the old-age population is more susceptible to poverty compared to the average Malaysian population with only 29 per cent of Malaysians having a pension or pension-like income during retirement.
A survey also found that over 26 per cent of respondents aged 60 and above will continue to work until their health fails.
"A recent survey found that 26.1 per cent of respondents aged above 60 will continue to work until their health fails as they face challenges in achieving income security to finance their retirement needs," Anwar said.
"We need to actively seek reform in the Malaysian pension framework in order to ensure that every generation in Malaysia will be able to look forward to growing old with dignity."
Anwar added that new solutions were needed to ensure no one was left behind and that every layer of society would benefit from social protection.
This included expanding EPF coverage in phases, he said, so that more of the working-age population would become part of the EPF ecosystem, which would ensure that more Malaysians could accumulate adequate retirement savings for their old age.
"It is time for Malaysia to embrace serious reform in its pension and retirement framework to enhance its coverage, adequacy, and sustainability, and ensure financial security and equity for all Malaysians in their later years and contribute to positive long-term economic growth," said Anwar.
The unity government, he said, remained committed to bettering the lives of older Malaysians and building a more inclusive and just society for all Malaysians, in line with the Malaysia Madani concept.