M'sian Economist Says Having RM240,000 In Savings Is Not Enough For Retirement
Previously, Deputy Finance Minister Datuk Seri Ahmad Maslan said that RM240,000 is sufficient for Malaysians to retire "with dignity".
By Aqasha Nur’aiman — 26 Jul 2023, 02:28 PM
A Malaysian economist, Prof Emeritus Dr Barjoyai Bardai, recently said that the general public won't be able to bear the high cost of living in the country with basic savings of RM240,000
According to Barjoyai, if RM240,000 is divided over 20 years, retirees can only spend about RM1,000 per month, which is highly insufficient, reported Berita Harian.
"This amount is not enough because food expenses for residents in Malaysia range from RM800 to RM1,200 per month. So, the allocated amount of RM1,000 is only enough to buy food. What about the cost of housing, utilities, clothes, and so on?
"In this case, RM1,000 is very insufficient. This is actually lower than the minimum wage of RM1,500. At least one family needs RM3,500 a month," he told Berita Harian.
Barjoyai further emphasised that the RM240,000 target was set by the Employees' Provident Fund (EPF) to assist Malaysians in their retirement planning
However, Barjoyai believes that most Malaysians are unlikely to achieve that target, with his prediction being that only about 15% of contributors will be able to do so.
He added that retirees will most likely have to work after retirement in order to increase and obtain sufficient financial resources for survival.
"Today, we have seen many Malaysians retire and eventually take on other jobs, especially former soldiers who went on to be taxi drivers, Grab drivers, and so on," he said.
The economist's remarks come after Deputy Finance Minister Datuk Seri Ahmad Maslan stated that RM240,000 is sufficient for Malaysians to retire "with dignity"
According to Ahmad Maslan, Malaysians can sustain a living until the age of 75 if they set a minimum saving goal of RM240,000 and spend approximately RM1,000 per month from the day they retire, reported Berita Harian on Monday, 24 July.
"The life expectancy of Malaysians is up to 75 years and they need to have sufficient retirement funds to retire with dignity.
"Basic savings of RM240,000 is enough, and they are able to survive on approximately RM1,000 per month. The people need to plan out their retirement with that minimum rate in their minds," he said.
