KUALA LUMPUR: The Employees Provident Fund (EPF) is making strides in addressing challenges of old-age income security, in particular for the four million informal workers that face greater risks because of the lack of mandatory contributions towards retirement programmes.
Its chairman Tan Sri Ahmad Badri Mohd Zahir said to mitigate this, the government came up with a few initiatives including the i-Saraan, which encourages voluntary contributions through a government incentive of up to RM500 yearly.
He also said the EPF has been putting in efforts to explore innovation for the informal sector, aligned with Malaysia Madani’s social protection schemes.
“In May 2024, we launched the restructuring of the EPF account for members under the age of 55 with the introduction of Akaun Fleksibel,” he said during the launch of the EPF International Social Wellbeing Conference (ISWC) 2024, themed “Ageing and Longevity: Towards a Meaningful Retirement” here yesterday.
However, he noted that the EPF was only one part of the broader pension landscape and there were still significant gaps in the national pension system.
According to Ahmad Badri, to mitigate this, a comprehensive retirement income framework is needed with multiple programmes under its purview to provide layered income and wide coverage.
“In Germany, Finland and South Korea, they are continuously enhanced to meet the evolving needs of citizens,” he said.
Ahmad Badri said the EPF will continue to support reforms in Malaysia’s retirement income framework to ensure inclusiveness and security for all.
He added in light of the rapidly advancing global ageing phenomenon, it was critical to look at the current challenges and issues surrounding this topic.
“A decade ago, living to 100 seemed rare, but now, in some developed countries, one in three babies born today will reach 100.
“In Malaysia, a key issue is that despite life expectancy rising to 75 years, healthy life expectancy remains relatively unchanged at 65.7 years,” he noted.
He said this gap calls for better care and resources to promote healthy ageing in Malaysia. “An active older population does not only improve health outcomes for the elderly, but contributes to the economic health of our nation,” he said.
Meanwhile, Prime Minister Datuk Seri Anwar Ibrahim who officiated the ISWC 2024 said there was an urgent need to prioritise investments in sectors like pharmaceuticals, healthcare and ageing infrastructure.
He said this can position the country to leverage on a market potential of US$15 trillion, driven by the needs and preferences of an ageing society.
Anwar added artificial intelligence and robotics will also play an important role for this part of society.
“Increasing availability and affordability of technological devices, ranging from smart home technology to wearable devices, which can help track health markers, may assist older Malaysians in living healthier retirement lives,” he said.
He also said it will take 23 years for Malaysia to shift from an ageing society to an aged one, as 14% of the population currently are above 65 years old.
“It will take only another 14 years thereafter for Malaysia to reach a super-aged nation status, with 21% above 65. The older aged population are more susceptible to poverty compared to the average population, as 29% of Malaysians have pensions or equivalents for their retirement.”