Thursday, 19 February 2015

OLD AND BROKE – THAT’S LIFE IN MALAYSIA

2013 study by the Employees Provident Fund which discovered that 69% of contributors aged 54 have a mere RM50,000 or less in their retirement fund.
With such a big amount set aside for their retirement, even if they live on the minimum spending level or poverty line, the money will only last five years at the most, and this does not take into account the rising cost of living annually and inflationary pressures.
Besides this, there are the findings of the United Nations Development Programme’s Malaysian Human Development Report (also published in 2013) which states that 57% of Malaysians have no financial investments and almost 90% have no liquid savings.
To compound matters, Malaysians are living longer and healthier now. But how are they to manage retirement if they have so little set aside for their old age?

This really is tantamount to a form of modern day slavery where more and more Malaysians are forced to work to make ends meet, probably until the day they die. It’s a frightening spectre for a nation aiming to become a high income country in 2020.

Retirement planning sessions and lessons or educational awareness of aging should be taught to youths by government organisations and agencies so that the next generation will be better prepared for retirement.





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