Targeted income support proposed for elderly to bolster retirement security

KUALA LUMPUR: Malaysia should consider targeted income support for those aged 70 or 75 instead of introducing a universal pension at a younger age, said Axiata Group Bhd chairman Tan Sri Shahril Ridza Ridzuan.

He said such support could form part of a broader strategy to ensure retirement savings adequacy by combining individual savings with public assistance for those in need.

"Today, the session discussed retirement savings adequacy, basically whether people have enough of their own savings or whether they require some support from the country or the government.

"If you look at a lot of the models in overseas countries, there is always a mix of both. There is some public support, while you also have your own savings.

"The support needs to be for people who reach a certain age, 70 or 75, when they are more likely to have already finished their own money but still need support to get by," he told reporters after his session, 'Malaysian Journey Towards Dignified Retirement: Are We Ready?', at the International Social Wellbeing Conference (ISWC) 2026 yesterday.

Shahril said a universal pension at a younger age might not be appropriate, while targeted income support could help those who had depleted their retirement savings.

RD WealthCreation Sdn Bhd chief executive officer Rajen Devadason said the statutory retirement age of 60 may need to be reconsidered as Malaysians live longer.

Speaking during his session, 'Living Longer Than Expected', he said life expectancy now exceeds 75, meaning those retiring at 60 could face another 15 to 20 years or more of living expenses.

He said longer lifespans meant retirement planning should focus on creating sustainable income streams rather than relying solely on accumulated savings.

Rajen estimated that about 15.3 million of Malaysia's 17 million workers would not receive a government pension, underscoring the need for greater individual responsibility for retirement security.

"That particular number grows every month because civil servants hired after January 2024 will not be pensionable. They're going to go to EPF," he said.

Meanwhile, D3P Global chief executive officer William Price proposed stronger public pension support from age 75 to address old-age poverty, particularly among vulnerable elderly groups.

Speaking during his session, 'Beyond the Lump Sum: From Savings to Sustained Income', he said the approach would provide stronger income support when people became less able to work, while allowing retirement savings to be used during the earlier years of retirement.

"Option one, try and have a public and private mix where you have significantly higher state pensions for the old, because that's the most effective way to tackle that poverty," he said.

ISWC 2026 was jointly organised by the Employees Provident Fund (EPF) and the Finance Ministry, bringing together policymakers, industry experts and global thought leaders to discuss retirement, ageing and social protection.

The two-day conference, which ended on Wednesday, focused on strengthening retirement, healthcare and care systems, building inclusive communities and harnessing innovation to support ageing societies.