Workers advised to save more for retirement

Miksa encourages Malaysians to change their habitual savings into private pension schemes as well as to have monetary incentives and financial education.

MALAYSIA’S pension scheme provides inadequate retirement income and is one of the least sufficient among 49 countries, according to Allianz’s Retirement Income Adequacy (RIA) indicator.

With benefits amounting to roughly one-third of one’s final salary (34%) at the official retirement age of 55, assets in the Employees Provident Fund (EPF) fall short of the Organisation for Economic Co-operation and Development (OECD) benchmark of 60% to 70% net replacement rate.