LETTERS: Malaysia's population is projected to reach 41.5 million by 2040, with the proportion of the population aged 60 and older at 17.6 per cent, representing over 7.3 million people, according to the Department of Statistics.
It is only logical that after having worked most of their lives, the elderly would look forward to retiring in comfort by perhaps travelling or simply by spending time with friends and family.
However, not all are fortunate to have the same luxury due to personal or financial circumstances.
There was a recent viral story about a 70-year-old man having to work as a food delivery rider to support his family. The old man had no choice but to work because his family needed money for their daily expenses. Many others are struggling too.
Regardless of whether you work in the civil service or the private sector, the hope remains the same, that is to retire peacefully.
However, as of now, there are too many uncertainties about life after retirement, especially pertaining to financial security and access to healthcare.
To better understand the needs and challenges of retirees, the following nine questions need to be answered:
How much do I need monthly to cater for my needs?; Do I have enough savings to last for the next 15 years?; Can I still work to earn money for my daily expenses?; Are there other options besides costs and EPF? Who will take care of me if I fall sick? What about medical costs? Can I get insurance? I am not married. I am alone. Where can I go?; Where do I live? I do not own any property and which retirement home is suitable for me?
A study — the Malaysia Aging and Retirement Survey Wave 2 (2021-2022) — was conducted by the Social Wellbeing Research Centre (SWRC), Universiti Malaya (UM) in collaboration with the Asian Development Bank (ADB).
It found that over 80 per cent of elderly people in Malaysia are not prepared to live in an assisted living facility, more than 60 per cent having at least one doctor-diagnosed disease and most respondents needed social/financial assistance.
Majority of respondents even requested the government to make it mandatory for children to care for their parents. As such, financial security is not the only element to consider, as there are other factors to reflect on.
It is encouraging to note that the Ministry of Economy, in collaboration with the World Bank, is currently developing a national ageing blueprint in preparation for the country's transition to an "ageing nation" by 2030.
The blueprint will help the government address the impact of an ageing population, including on economic growth, productivity, workforce, social protection, and healthcare for the elderly.
While developing our policies, it would be wise to also look at what other countries are doing in the context of retirement. The Mercer CFA Institute Global Pension Index 2023 is an excellent reference to different pension systems around the world for our policymakers.
The report is an analysis and ranking of 47 pension systems around the world, where Malaysia is ranked at number 32. According to the study, the Netherlands, Iceland and Denmark have the best pension systems in the world.
The report also proposed areas for Malaysia to improve on, including household savings/debt, pension age, as well as increasing support for the poor.
AHMAD HISHAM IDRIS
Programme Head
National Institute of Public Administration
Kuala Lumpur
The views expressed in this article are the author's own and do not necessarily reflect those of the New Straits Times