As Malaysia ages, govt mulls review of savings and retirement plans

PUTRAJAYA: The finance ministry is considering a review of policies and schemes related to savings and retirement plans as Malaysia reaches the status of an ageing nation.

It will intervene from time to time to ensure the people have enough savings for retirement, its deputy minister Amiruddin Hamzah said.

Amiruddin said a study by the Khazanah Research Institute has shown that retirees spent their entire retirement savings from financial institutions within five years.

“Our country is moving faster towards becoming an ageing nation than the European countries and the United States,” he said, noting that this could happen here as early as 2030.

Hence, action must be taken to ensure retirees have enough savings, he said after launching Affin Hwang Asset Management Bhd’s government and public sector communications office at [email protected] here today.

Amiruddin said the government had no plans to review the Employees Provident Fund’s withdrawal scheme for retirees.

He said the government has provided welfare aid and electricity subsidy of RM40 and water subsidy, in some states, to lessen the financial burden of retirees.

It has also launched the B40 National Protection Scheme (MySalam) and Healthcare Protection Scheme (PeKa) for the B40 lower-income group. Retirees will also benefit as this reduces their dependence on their children.