Pre-retirees are generally equipped for their social and family needs, but are lacking in financial and health-related aspects

By SHAZNI ONG / Pic By MUHD AMIN NAHARUL

Over 60% of those below the age of 40 in the public sector have indicated needing financial advice or assistance to help them prepare for retirement, according to a KWAP-MyAgeing research findings.

The report, titled “Retirement Preparedness and Productive Ageing Among Government Employees and Retirees in Klang Valley”, revealed that pre-retirees were generally equipped for their social and family needs, but were lacking in financial and health-related aspects.

The research revealed about 10% of total pre-retirees were diagnosed with hypertension, diabetes and hyper-cholesterol, all of which were preventable and lifestyle-related diseases.

Project leader and MyAgeing director Professor Dr Tengku Aizan Hamid said many public sector employees are unsure about the steps they need to take in planning for their retirement.

“This consequently lead to being unable to adopt the right habits and practices from an early age to stay financially secure and physically productive as they age,” she said at a press briefing held in Kuala Lumpur yesterday.

The report revealed pre-retirees were contributing to the economy through a range of productive activities beyond employment.

“The total economic contributions of pre-retirees is RM11 billion for market replacement rate (MRR) and RM9.8 billion for opportunity cost (OC) method.

“The economic contributions from pre-retirees were primarily attributed to caring for family members and little time spent on more community-oriented activities,” the report said.

For retirees, the research found that only 23% of retirees were involved in productive activities for the community — such as volunteering and teaching, while the majority was involved in routine activities that included caring for themselves and their family members.

On the matter of health status of retirees, only 22.5% indicated they were healthy with no diseases, while those diagnosed with at least one medical condition said they were limited in their ability to remain active during retirement.

“Though retirees are commonly viewed as a burden to society, findings show they contributed significantly to society, especially in care roles.

“Total economic contributions of retirees is RM11.7 billion for MRR and RM10.3 billion for OC,” the report noted adding that only 30% of retirees chose to continue working after retirement.

The findings suggest early financial planning and promoting a healthy lifestyle are two critical steps to ensure civil sector employees could maintain their productivity and actively engage with society, even after withdrawing from employment.

Tengku Aizan opined that this dual focus on financial security and health status is essential for tapping into their potential value as a resource to be absorbed into the economy, which benefit both themselves and the nation.

“It is reassuring that higher levels of awareness and some form of retirement plan was observed among pre-retirees who attended pre-retirement courses. Retirees who also practice a healthy lifestyle were more actively engaged with their surrounding communities.

“With the right education and advice and programmes that emphasise health, pre-retirees have a real opportunity to enhance their retirement outlook,” she said.

Data from the research survey was gathered from a sample base of 1,600 respondents.

The research notes that proper implementation of policies and programmes is needed to elevate levels of retirement preparedness and encourage productive ageing among retirees.

When asked to comment on whether the country is ready to face an ageing nation, Tengku Aizan said technically, yes.

“In terms of policies, we are ready but implementing the policies is quite slow. However, it has been well thought of in terms of the policies instrument. It’s just a matter of time,” she said.

Meanwhile, KWAP CEO Datuk Wan Kamaruzaman Wan Ahmad said a strong focus on having proper retirement plans and maintaining good health has become fundamental to the process of securing a meaningful and productive retirement, considering the retirement challenges that lie ahead.

“Although KWAP-MyAgeing’s inaugural research focused on respondents in the Klang Valley, this collaboration has proved to be a pivotal first step in determining key areas for improving our present efforts, and identifying newer avenues to direct the skills and talents of retirees into activities that are aligned with the nation’s overall plans for socio-economic development,” he said.

Moving forward, the organisation will look into expanding this survey as the MyAgeing’s research and recommendations will complement KWAP’s ongoing and future initiatives and pensioners outreached campaign, he added.