KUALA LUMPUR: After the i-Lestari, i-Sinar and i-Citra initiatives were introduced a couple of years ago, where Employees Provident Fund (EPF) contributors were allowed to withdraw money from their second account, the financial security of the elderly has now come into question.

National Council of Senior Citizens Organisations Malaysia deputy president Datuk Dr Soon Ting Kueh said since many EPF contributors who were due for retirement in a few years have less than RM10,000 in their accounts, the government needed to step in to address the problem.

The initiatives, introduced during the two-year lockdown due to the Covid-19 pandemic, while helping many Malaysian families to survive, was slammed by economists who described the withdrawals as dangerous to the future of Malaysians.

“How are they (the elderly) supposed to survive with such an amount left?

“We hope that the retirement age could be extended (because) they must have financial security.

“Some companies can still allow them to work (beyond their retirement age).

“Nowadays people are healthier and can work longer hours. Working beyond 60 is not a problem.

“If a civil servant, for example, still works for another two or three years, the government will save money on pensions and these people will be productive and contribute to the economy, right?

“With technology, companies can also provide flexibility, such as working from home for certain types of jobs and, in this way, they could still contribute to the economy,” Dr Soon said when contacted.

Up until January, it was reported that 6.1 million, or almost 50 per cent, of EPF contributors under the age of 55 had savings of less than RM10,000 for their retirement.

Economic experts said given the current situation, EPF contributors would likely have to work until the day they die rather than enjoy the fruits of their labour in their golden age.

In March, the New Straits Times wrote about fishermen in the rural village of Kampung Sedili Kecil in Johor.

Fishermen who are well into their 50s told this newspaper that they had less than RM1,000 in their EPF accounts.

Given the severity of the situation, Dr Soon urged the government to look into issues surrounding the ageing population now and not wait for a few more years as he feared it might be too late for the country then.

“Action needs to be taken now because our nation is not well-prepared to face an ageing society.

“Old folks homes are either too expensive or they don’t have good services.

“The government must make sure everything is in place so that this country is prepared.”

Source : NST