Tuesday, 27 September 2011

Employees Provident Fund (EPF) (KWSP) as review 58 or/until 60

The Employees Provident Fund (EPF) (KWSP)suggests that the government should review private sector retirement age to be raised between 58 and 60 years due to several factors including lack of retirement savings and cost of living higher.

Chief executive officer Tan Sri Azlan Zainol said he hopes the government will consider and review the current retirement age of 55 years in the announcement of the upcoming budget.

"I hope it is extended at least at the age of 58 years if not 60 years. In fact, we also hoped that the private sector minimum wage is also included in the budget to be announced later, "he told reporters after delivering a keynote address at the conference of Private Pension and Health Care Malaysia 2011 in Kuala Lumpur, yesterday.

In his keynote address, Azlan said there were two issues to be dealt with Malaysia in implementing an efficient pension system, those who quickly retired and low savings.

"On the lack of retirement savings, concerns about issues relating to double, and look to the actual distribution of funds, 73 percent of contributors have less than RM50, 000 while only 17 per cent kept a RM100, 000 at the time of their retirement," he said.

He said it was exacerbated by the fact most members spend their retirement money too quickly. Meanwhile, Azlan also said the old-age medical expenses are expected to increase significantly in the coming year based on forecasts of the United Nations (UN).

He said health spending in Malaysia increased from RM9.8 billion in 2007 to RM12.2 billion last year and the Federal government health expenditures are expected to total RM13.2 billion.

"This was moving together with the demographics of an aging nation, health care costs higher," he said.


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