HOW TO HELP THE ELDERLY SURVIVE
The rising ageing population in Malaysia demands an effective planning solution to ensure the elderly can live independently and in comfort, writes MASRIWANIE MUHAMADING
INSUFFICIENT savings, longer life expectancy and rising cost of living are pushing more of the elderly population in Malaysia to below the poverty line.
According to the Employees Provident Fund (EPF), as at Dec 31 last year, out of the 231,937 members aged 54, 133,085 people, or 57 per cent, have less than RM50,000 in their EPF accounts.
EPF says only 26,711 members aged 54, or 11.5 per cent (including 22,247 active members), meet the Basic Savings Quantum of RM228,000 in the same period.
Based on the assumption that a retired member spends RM950 per month, equivalent to the minimum pension for civil servants (prior to 2017), the Basic Savings Quantum is expected to last for about 20 years from 55 to 75, in line with the Malaysian life expectancy.
EPF, however, reveals that surveys have shown most of its members tend to deplete their savings within five years of retirement. number of years it takes for a member to use up all their retirement savings will depend on factors, including lifestyle, expectations for the future, number of dependents, living arrangement, health status and the amount of money to allocate to a beneficiary.”
Sunway University Business School Economics Professor Dr Yeah Kim Leng believes that raising the retirement age may be a solution for people to accumulate more savings to prepare for realso irement, while ensuring a stable working population. Yeah says the governshould ment look into ways to provide incomegenerating opportunithe ties for elderly who are forced to retire due to health or physical conditions, but require income support or had nsufficient savings.
“The government needs to create job opportunities that are suitable for the elbe erly. These can flexible emthat ployment allows the elderly to work from home, for instance.
“It is important that those without enough savings be provided with the opportunity to continue working so that they can accumulate more savings to prepare for retirement.
“There should also be an option for those who have enough savings and wish to retire at an earlier age.”
With the growth of the elderly population, Yeah says the government should be prepared to set aside a bigger amount of funds for geriatrics healthcare, pensions and social security programmes, as well as building more retirement homes in the years to come.
Economist Jomo Kwame Sundaram says the government needs to formulate programmes to encourage more women, especially those with family and children, to enter or re-enter the workforce.
“When you think about this problem (poverty among the elderly), you have to think especially about the women.
“Today, the life expectancy of women is 77.4, while for men it is 72.7 (according to the Malaysia Statistics Department), which is a difference of about five years.
“However, in our society today, many women are not in the labour force.
“So they have nothing to protect themselves (especially when they are older).”
He says the government needs to find ways to make it possible for women to work and still take care of their children.
Based on the Principal Statistic of Labour Force Malaysia 2017, provided by the Malaysia Statistics Department, 7.1 million of the working age population (15 to 64), or 32 per cent, were outside the labour force compared with 15 million in the labour force.
The department reports that those outside the labour force comprise housewives, students, retirees and those not interested in working.
It reveals that the labour force participation rate of men last year is 80.1 per cent, 54.7 per cent for women.