AZ is in his late 60s. He worked in the private sector for almost four decades before he retired. Raising four children wasn’t easy during his working years. He has little savings.
Thankfully all his children are working now and having their own families.
His wife, who opted for retirement 12 years ago, has not been well in the last three years. He takes care of her for he can’t afford a nurse. Her medication bills have sapped his resources.
He is one worried person. He has bills to pay. Mortgage payments for the house is one. He has no other income. He sold off a property before to settle some of his financial obligations. There are times when he was in dire need of money. He is too proud to ask from his children. He knew most of them are struggling to make ends meet.
Perhaps AZ is a typical “elder person” in this country. There are those who are enjoying the last years of their lives on government pensions. There are many more who are without pensions.
According to the Credit Counselling and Debt Management Agency (better known by its Malay acronym AKPK) more than 50% of Malaysians are not financially ready for retirement.
In a survey they conducted, one in five was saving less than 10% of their monthly salaries while working.
Malaysians are not the saving kind. Even if they do, the amount is not enough. The young never think of retirement. For them the retirement plan can wait, so too the practice of saving. By the time they realise the need to save, it is already too late.
Many working Malaysians are expecting their money in the Employees Provident Fund (EPF) to be the saviour. But as pointed out by Prof Jomo S. Sundram, savings for most Malaysians “are barely enough for a decent life after retirement”.
Writing for this newspaper in October 2017, Jomo pointed out that assuming anyone living up till 75, with an average EPF savings of RM194,000, it would bring RM25 per day or hardly RM810 a month.
It is not easy to live on RM810 a month. It makes matters worse if the person is still the bread winner of the family.
Little wonder many of those reaching retirement age are still working. They are lucky if they do not have any major financial commitments or have debilitating diseases.
The worrying thing is more than two-thirds (or 68%) of EPF members aged 54 had less than RM50,000 in their savings. In most cases EPF money is not enough to keep the elderly afloat for many years to come.
Financial insecurity is a widespread problem bedevilling the seniors today.
In the Unites States, one in every three seniors (36%) is economically insecure. Forty per cent of senior households considered themselves financially vulnerable.
But financial security is just one of the many issues facing them today.
The fact remains that the costs associated with getting older are rising. The romance and lore of the “Golden Years” are merely found in popular culture.
Other than declining resources, there are simply too many “unknowns” derailing what is supposed to be the elders’ finest years of their life. Poverty is especially rampant in this age group without many realising it.
At the same time anxiety in most cases is running high among the seniors.
Take the case of AZ’s wife. She was entrusted to look after three of her grandchildren when she was healthier.
It took a tremendous physical and psychological toll on her. The parents are working and sending the children to nursery homes is expensive.
With all the stories about children being abused by minders, they seek the help of the mother to take care of the toddlers. It was stressful for AZ’s wife.
Anxiety according to a study is a common illness among older people, affecting as many as 10% to 20% of them. In most cases it is often under-diagnosed.
In Malaysia, such conditions are even mocked and seldom taken seriously. Mental conditions are never taken seriously partly due to our culture and our penchant for sweeping everything under the carpet.
With Malaysian life expectancy rising, the burden of managing an ageing nation is a real challenge for the government. Especially to ensure this country is elderly-friendly.
Johan Jaaffar was a journalist, editor and for some years chairman of a media company, and is passionate about all things literature and the arts. The views expressed here are entirely his own.
Thankfully all his children are working now and having their own families.
His wife, who opted for retirement 12 years ago, has not been well in the last three years. He takes care of her for he can’t afford a nurse. Her medication bills have sapped his resources.
He is one worried person. He has bills to pay. Mortgage payments for the house is one. He has no other income. He sold off a property before to settle some of his financial obligations. There are times when he was in dire need of money. He is too proud to ask from his children. He knew most of them are struggling to make ends meet.
Perhaps AZ is a typical “elder person” in this country. There are those who are enjoying the last years of their lives on government pensions. There are many more who are without pensions.
According to the Credit Counselling and Debt Management Agency (better known by its Malay acronym AKPK) more than 50% of Malaysians are not financially ready for retirement.
In a survey they conducted, one in five was saving less than 10% of their monthly salaries while working.
Malaysians are not the saving kind. Even if they do, the amount is not enough. The young never think of retirement. For them the retirement plan can wait, so too the practice of saving. By the time they realise the need to save, it is already too late.
Many working Malaysians are expecting their money in the Employees Provident Fund (EPF) to be the saviour. But as pointed out by Prof Jomo S. Sundram, savings for most Malaysians “are barely enough for a decent life after retirement”.
Writing for this newspaper in October 2017, Jomo pointed out that assuming anyone living up till 75, with an average EPF savings of RM194,000, it would bring RM25 per day or hardly RM810 a month.
It is not easy to live on RM810 a month. It makes matters worse if the person is still the bread winner of the family.
Little wonder many of those reaching retirement age are still working. They are lucky if they do not have any major financial commitments or have debilitating diseases.
The worrying thing is more than two-thirds (or 68%) of EPF members aged 54 had less than RM50,000 in their savings. In most cases EPF money is not enough to keep the elderly afloat for many years to come.
Financial insecurity is a widespread problem bedevilling the seniors today.
In the Unites States, one in every three seniors (36%) is economically insecure. Forty per cent of senior households considered themselves financially vulnerable.
But financial security is just one of the many issues facing them today.
The fact remains that the costs associated with getting older are rising. The romance and lore of the “Golden Years” are merely found in popular culture.
Other than declining resources, there are simply too many “unknowns” derailing what is supposed to be the elders’ finest years of their life. Poverty is especially rampant in this age group without many realising it.
At the same time anxiety in most cases is running high among the seniors.
Take the case of AZ’s wife. She was entrusted to look after three of her grandchildren when she was healthier.
It took a tremendous physical and psychological toll on her. The parents are working and sending the children to nursery homes is expensive.
With all the stories about children being abused by minders, they seek the help of the mother to take care of the toddlers. It was stressful for AZ’s wife.
Anxiety according to a study is a common illness among older people, affecting as many as 10% to 20% of them. In most cases it is often under-diagnosed.
In Malaysia, such conditions are even mocked and seldom taken seriously. Mental conditions are never taken seriously partly due to our culture and our penchant for sweeping everything under the carpet.
With Malaysian life expectancy rising, the burden of managing an ageing nation is a real challenge for the government. Especially to ensure this country is elderly-friendly.
Johan Jaaffar was a journalist, editor and for some years chairman of a media company, and is passionate about all things literature and the arts. The views expressed here are entirely his own.
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