MALAYSIA has an ageing population. Compared to other developed countries, Malaysia currently has a relatively small social security net for retirees and aged senior citizens. Elements such as long-term care insurance, private pension schemes, annuity income, reverse mortgages and others constitute what is normally considered to be a necessary safety net. For the good of Malaysians' future retirement and acceptable senior or old age living conditions, the missing elements are now required.
Many from the Baby Boomers and Generation X are facing challenges building adequate savings for retirement. Unlike western countries which collect higher rate of tax from the people and then provide them retirement benefits, we have to save to fund our own retirement. We have to save more because we have limited social security benefits for the aged. On top of that, we need more retirement-related products to help us save because of the longevity risk, living expenses and healthcare costs.