{"id":25596,"date":"2016-08-12T10:53:02","date_gmt":"2016-08-12T02:53:02","guid":{"rendered":"https:\/\/www.imoney.my\/articles\/?p=25596"},"modified":"2016-08-12T10:55:16","modified_gmt":"2016-08-12T02:55:16","slug":"44-malaysian-workers-are-not-covered-by-any-retirement-scheme","status":"publish","type":"post","link":"https:\/\/www.imoney.my\/articles\/44-malaysian-workers-are-not-covered-by-any-retirement-scheme","title":{"rendered":"44% Malaysian Workers Are Not Covered By Any Retirement Scheme"},"content":{"rendered":"
Close to half of Malaysian workers are not covered by any retirement scheme because there is a lack of a comprehensive social protection system.<\/p>\n
This 44% consists of over six million people who\u00a0are self-employed or in the semi-formal sector.<\/p>\n
Tunku Alizakri Alias, the deputy chief executive officer (Strategy) of Employees Provident Fund (EPF) said, currently only 46% of the workforce are covered by the EPF, while 10% are under the pension scheme. The remaining 44% are left out.<\/p>\n
\u201cWe are a bit worried even if they (the 44%) must know what they are doing.<\/p>\n
\u201cIn terms of financial literacy, they must try and upscale themselves as fast as possible,\u201d Tunku Alizakri was quoted by The Star Online<\/em>.<\/p>\n He also encouraged those who need help to approach Bank Negara or the EPF\u2019s retirement advisory services.<\/p>\n \u201cIt\u2019s free but they need to be as open as possible, just like going for a medical health check,\u201d he added.<\/p>\n Retirement planning is important. All employees should identify what they wanted for retirement and plan for it accordingly, he advised.<\/p>\n He said\u00a0all employees should\u00a0know what they wanted for retirement and prepare for it accordingly.<\/p>\n Datuk Shahril Ridza Ridzuan, EPF chief executive officer, said, getting the semi-formal sector employees to contribute to their retirement is a challenging policy issue because they are clueless on how to provide for themselves and for retirement.<\/p>\n \u201cIt\u2019s essentially how to force people to contribute to their future wellbeing.\u201d<\/p>\n This issue and the trend of young people who are increasingly uninterested in traditional jobs, will be tackled in next year\u2019s social security conference, he added.<\/p>\n \u201cThis is a key issue not only for Malaysia but also for other countries that grapple with this challenge,\u201d he said.<\/p>\n