KUALA LUMPUR: The Social Security Organisation (Perkeso) is working on a two-pronged solution to ensure Malaysian retirees are looked after in their golden years.
"We believe many people simply do not have enough retirement savings to live a decent life," said Perkeso deputy chief executive officer of strategy and corporate Edmund Cheong.
While pensionable civil servants receive a lifelong pension, this is not the case for those in the private sector and non-pensionable civil servants.
Currently, Perkeso coverage is limited to those in the workforce, regardless of age, leaving many retirees without a safety net.
This is where it gets concerning: Last November, the Finance Ministry revealed that 6.3 million Employees' Provident Fund members under 55 had less than RM10,000 in their accounts.
"Perkeso is anticipating a 'Golden Tsunami'.
"According to the World Bank, Malaysia will be a super-aged country by 2055 where 20 per cent of the population will be over the age of 65," Cheong said, commenting on Deputy Human Resources Minister Datuk Seri Abdul Rahman Mohamad's remarks on the government's plans to provide a safety net for retired private sector workers in the Dewan Rakyat.
He added that Perkeso had two plans, the first being a pension-like scheme known as Aged Care Protection.
"This will require contributors to make additional payments, and once they retire, they will get monthly payouts based on a percentage of their average earnings during their working years."
Cheong said further details on the plan have yet to be finalised.
The second strategy is known as Aged Living Centres, which are designed to provide comprehensive support for senior citizens nationwide.
"We plan to provide safe, comfortable and well-equipped accommodation tailored to the needs of the elderly.
"Perkeso will also provide nutritious meals and access to essential healthcare services.
"But Perkeso does not believe in institutionalisation, so these centres will be integrated into society. Activities and social programmes for senior citizens will be facilitated to enhance their quality of life."
Cheong said Aged Living Centres will also serve as platforms for the elderly to stay active and connected.
"This can be done via activities including teaching younger Malaysians. It's not just about looking after the elderly, but empowering them and ensuring they can spend the rest of their days with dignity, security and a sense of belonging."
Cheong said Perkeso wanted to help the country prepare for the "Golden Tsunami".
"If we do not prepare now, we will be headed for old-age poverty. We must ensure no one is left behind."
He said Perkeso will be presenting their detailed proposal to Human Resources Minister Steven Sim by the end of the year.