09 August 2007

More than a third of retirees need to work


KUALA LUMPUR: More than one-third of retirees are thinking of returning to work as they are out of pocket. A study found 37 per cent of retirees were forced to do so as a result of dwindling savings.

The study by Prudential Assurance Malaysia Berhad also found that 67 per cent of retirees’ primary source of income was in the form of monetary aid from children.

Another 14 per cent lived on money earned from part-time jobs.

Prudential Assurance Malaysia Bhd chief executive officer Tan Kar Hor said it was worrying that many were not worried about retirement.
"A majority of Malaysians do not know how much exactly they need to survive in retirement. Six out of 10 save as much as they can and hope it will be enough for their retirement," he said.

He said Malaysians were also not comfortable seeking advice from financial planners.

Earlier this year, the New Straits Times reported that financial planners had come up with figures ranging between RM1.4 million and RM2.8 million for a person to retire comfortably.

EPF deputy chief executive officer Rusma Ibrahim was quoted as saying that one should start saving for retirement immediately after getting a job.

She had said that on average a 54-year-old contributing member in 2005 had only RM100,000 left in his EPF account.

She had added that 99 per cent of members withdrew their entire savings at 55.

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