RETIREMENT PLANNING IN MALAYSIA: ISSUES AND CHALLENGES TO ACHIEVE SUSTAINABLE LIFESTYLE

Abstract

Malaysia will be an ageing population by 2030, less than 15 years from now. Many issues and challenges will arise due to this change of demographic scenario. Current situation shows Malaysians are not ready to face the challenges ahead. This study aims to explore the issues and challenges facing by Malaysians due to fast ageing population. This study will also highlight some suggestion for improvement to encourage the people and the Government for actions and planning to be taken to achieve a sustainable lifestyle especially for aged population. Among the primary suggestions for improvement are: An efficient involvement of the Government sector, spurring the financial literacy among the Malaysian on ageing financial planning as early as possible, continuous of Government support and incentives for Private Retirement Scheme (PRS) via strengthening the Pillar III of the World Bank’s Pension Conceptual Framework which is the Voluntary Personal Pension Scheme. Last but not least is to explore and introduce The Public Pension Plans that are publicly managed or Pillar I of The World Bank’s Pension Conceptual Framework into Malaysia Pension Scheme, which currently is not in existence in the country.