Malaysians are living longer & some into the eighties if they don’t die of accidents/terminal illness. As most retire at 60 years, many will have 20 years of retirement ahead of them with no active salary / income.
Retirement is a ticking time bomb for Malaysia:-
1) Many are not saving enough when a big chunk of their salaries go to mortgage & car loans.
2) Parents tend to prioritize children education over their own retirement.
3) Contrary to what many think, not all medical conditions / stages / treatment are covered by medical insurance. Some took on debt / sell properties to cure their loved ones.
4) Earlier withdrawal from EPF account 2 (for education, medical & property purchase) significantly reduces the only retirement fund many Malaysians have.
5) It’s difficult to find meaningful jobs with decent pay to support yourself after retiring.
6) Majority (esp. housewives) still assume that their children will take care of them in old age, while adult children are already struggling to make ends meet themselves.