Aye to pension scheme for those in private sector

Shanti Malar: It will help those above 60 be financially independent. — Photos: LIM BENG TATT/ The Star ( October 02, 2022 ) — LIM BENG TATT/The Star

MALAYSIANS working in the private sector laud the government’s proposal to turn the Social Security Organisation (Socso) into a pension-like scheme.

R. Shanti Malar, 39, a manager with a multinational company, said this could help many Malaysian retirees during their golden years.

“Most Malaysians work in the private sector and this will help them be financially independent after turning 60.

“Socso should be maintained as it is while the contributor is still working, and should only be turned into a pension scheme once they are no longer employed,” she said.

Manufacturing specialist David Lay, 47, described the proposal as timely as savings among retirees was fast depleting, especially during these tough economic times.

“Many have been withdrawing their money from the Employees Provident Fund (EPF).

“Therefore, having a pension- like scheme for private sector employees would be good,” he said.

Sulaiman Jamal, 32, a chargeman, hoped the proposal could be implemented as soon as possible.

“It will give those of us in the private sector an additional source of income other than EPF, when we retire.”

Hotel cook Jeswant Singh, 30, described the proposal as a people-oriented policy by the government that could improve the lives of senior citizens.

“As someone from the younger generation, I currently do not have any other secure savings except for EPF.

“Having Socso turned into a pension fund will definitely help me when I am older,” he said.

Human Resources Minister Datuk Seri M. Saravanan had said last month that a pension-like scheme for private sector employees over 60 was being mulled.

He had asked Socso to study the feasibility of converting contributions of private sector employees aged 60 and above into a pension- like scheme.

Saravanan had said the study would take six months but reiterated that such a scheme was needed as most senior citizens had depleted their savings post-retirement.