Business : Targeted Income Support For Elderly To Bolster Retirement Security

Malaysia should explore targeted income support for those aged 70 or 75, according to Tan Sri Shahril Ridza Ridzuan, chairman of Axiata Group Bhd. He suggested this as part of a comprehensive approach to ensure adequate retirement savings by combining individual savings with government assistance. A universal pension at a younger age may not be suitable, but targeted income support could help those who have exhausted their retirement funds.

Rajen Devadason, CEO of RD WealthCreation Sdn Bhd, emphasized the need to reconsider the statutory retirement age as Malaysians are living longer, with life expectancy exceeding 75 years. This means retirees at 60 may face 15 to 20 extra years of living expenses. Therefore, retirement planning should focus on creating sustainable income streams rather than solely relying on accumulated savings.

Around 15.3 million of Malaysia's 17 million workers currently lack government pensions, highlighting the importance of individual responsibility for retirement security. William Price, CEO of D3P Global, proposed stronger public pension support starting at age 75 to tackle old-age poverty, particularly among vulnerable elderly groups.

He suggested a mix of public and private support, providing stronger income assistance when people retire, while allowing savings to be utilized during the earlier retirement years. The International Social Wellbeing Conference (ISWC) 2026, co-organized by the Employees Provident Fund (EPF) and the Finance Ministry, brought together policymakers, industry experts, and global thought leaders to discuss strengthening retirement, healthcare, and care systems, building inclusive communities, and leveraging innovation to support aging societies.