PETALING JAYA: The data from the Employers Provident Fund (EPF) recently indicated that one in four Malaysians have dwindled their savings within five years after reaching the age to withdraw funds, said Prime Minister Datuk Seri Anwar Ibrahim.
Speaking during the launch of the International Social Well Being Conference (ISWC) today, Anwar who is also Finance Minister, said the “lump-sum nature” of the EPF benefit will lead to many Malaysians not able to maintain a comfortable retirement or manage other financial risks.
According to the New Straits Times, Anwar pointed out that the nation’s elderly population is more vulnerable to living in poverty compared to the average Malaysian population with only 29% having a pension or income that is akin to a pension during their retirement years.
Furthermore, a survey found that more than 26% of respondents aged above 60 years old will resume working until their health declines and Anwar stated that this age group is facing hurdles in, quoting the report, “achieving income security” to fund their retirement.
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“We need to actively seek reform in the Malaysian pension framework in order to ensure that every generation in Malaysia will be able to look forward to growing old with dignity,” he said.
He also emphasised the need for new solutions in making sure no one is left behind and “every layer of society” would potentially benefit from “social protection”.
Anwar then proposed including the expansion of EPF coverage in phases so that more Malaysian workers can be part of the “EPF ecosystem”, thereby ensuring more people have gathered adequate savings in time for their retirement.
“It is time for Malaysia to embrace serious reform in its pension and retirement framework to enhance its coverage, adequacy, and sustainability, and ensure financial security and equity for all Malaysians in their later years and contribute to positive long-term economic growth,“ Anwar added.
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