Malaysia not completely ready to face challenges of an ageing nation

KUALA LUMPUR: Malaysia is not completely ready to face reality as an ageing nation come 2030, according to a research finding by Kumpulan Wang Persaraan (Diperbadankan) [KWAP] and Malaysian Research Institute on Ageing (MyAgeing).

MyAgeing Project Leader and Director Professor Dr Tengku Aizan Hamid said the study found over 60 per cent of pre-retirees, who are people aged 40 and below, need financial advice or assistance to help them prepare for retirement.

“Some of the things that we recommend are cashflow and debt management.

“Another thing that we also recommend was forced savings, but this is something that we have not discuss completely yet,” Tengku Aizan said.

This findings is part of the report entitled ‘Retirement Preparedness and Productive Ageing among Government Employees and Retirees in Klang Valley,’ a result of a collaboration between KWAP and MyAgeing.

Data for the research survey was polled from over 1,600 government employees.

“A total of 53.7 per cent of male employees and 44.8 per cent of female employees are burden down with personal loans. Though we understand the need to have car and housing loans, we were not expecting people to have such a big chunk of personal loans well into their 40s,” he said.

“We believe if these personal loans are not serviced properly, it will have big impact for them in their retirement later,” he said.

Tengku Aizan stressed that despite the data and policies in placed, it is up to the individual to properly managed their money for retirement.

“Behaviour plays a big part on and how you manage your lifestyle in the retirement days. The policies that are on place need to be implemented in stages. Retirement planning, coupled with education and awareness are the first step in aging nation preparedness and combating old age poverty,” she said.

About 15 per cent of Malaysia’s total population will become 60 years old above by 2030, thus classifying it as an ageing nation.

Source: NST