RM390,000 menjelang 2030: Pakar gesa caruman KWSP automatik pekerja gig

An economist has called for the Malaysian government to introduce automatic savings schemes and higher matching contributions for gig workers and the informal sector to meet the target of having 60% of KWSP members reach a savings base of RM390,000 by the age of 60 by 2030. Ahmed Razman Abdul Latiff from the Putra Business School noted that the current voluntary approach needs to be aided through digital platforms such as e-call and p-call.

He emphasized that achieving the 60% target alone cannot rely on economic growth alone, and reforms in income structure and saving discipline need to be focused on. Razman stated that the best approach is to move away from voluntary KWSP savings to automated and matched savings. For low-income earners, the issue is not a lack of awareness about the importance of savings but insufficient additional income to save.

If only urging them to save without increasing income, achieving the target becomes challenging. On 29th September, Prime Minister Anwar Ibrahim, who is also the Finance Minister, announced Malaysia's target of 6 out of every 10 KWSP members reaching the base savings target of RM390,000 by the age of 60 by 2030. Currently, nearly four out of ten members are below the target line under the country's sufficiency income ratio (SIR) framework.

Razman added that RM390,000 should be viewed as an affordable floor, not a post-retirement guarantee. According to the RIA KWSP model, that amount only estimates monthly outgoings of about RM1,625. Razman also noted that healthcare costs pose a significant risk, with Bank Negara reporting Malaysian healthcare inflation hitting 15% in 2024.

He suggested that RM390,000 in 2030 should be seen as a floor, not a safety net. For a more sustainable retirement, a target of RM650,000 would be more relevant. Mohd Afzanizam Abdul Rashid, Head Economist at Bank Muamalat, noted that increased voluntary savings awareness shows a positive development in retirement savings commitment.

However, he noted that factors like salary ladders, high living costs, and the reliability of earnings through Flexible Accounts can put pressure on the overall savings value in the short term. He acknowledged that the target is a good start in placing government efforts in line with the desired goals.