Malaysia’s racing against time to become a developed nation but with a growing population of singles, couples having fewer kids and people living longer, there’s a high chance we’ll be an aged country before then. And, we are far from ready to grow old.
MALAYSIA is fast becoming an aged nation. And it isn’t ready.
In 2006, we hit the ageing status and by 2030, we’ll be aged.
Lack of care centres for the aged, infrastructure and money are why we’re struggling.
Describing the situation as “dire if we do nothing”, Employees Provident Fund (EPF) deputy chief executive officer (strategy) Tunku Alizakri Alias (pic) says we’re ageing before we can reach developed nation status.
The number of youngsters are dropping as the number of seniors soar, he points out.
“Other countries are becoming aged too but they’ve already developed. Our window period for planning is much shorter.
“Making policies and implementing them takes time. And, you can’t save money overnight,” he warns, stressing that not enough retirement savings and low financial literacy are big challenges.
Sixty-eight percent of members aged 54 have savings lower than RM50,000 which can only last five years assuming they spend RM820 per month. The full EPF withdrawal age is 55 but the average life expectancy is 75.
Malaysians must face facts. We’re living longer so we must work longer, he says.