Malaysia: Adequacy of retirement savings is a concern
Source: Asia Insurance Review | Dec 2016
A retiree, particularly if he is an urbanite, needs at least MYR1,500 (US$344) monthly to sustain himself, according to Universiti Utara Malaysia Deputy Vice-Chancellor (Research and Innovation) Prof Noor Azizi Ismail.
He said private sector workers should not totally depend on their government-run mandatory Employees Provident Fund (EPF) savings to provide them with a comfortable retirement, reported Bernama.
According to EPF last May, only 22% of the 6.7 million active contributors, aged 54 years, had at least MYRM196,800 in their accounts, which worked out to about MYR820 monthly during retirement. Prof Noor Azizi described the statistics as worrying, particularly with regard to healthcare costs.
“Those with insurance may not have a problem, but I know there are many who do not have health insurance, particularly, lower income employees,” he said.