Friday 29 Mar 2024
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KUALA LUMPUR (Oct 30): While retirees are commonly viewed as a burden to society, a survey done by the Retirement Fund Inc (KWAP) together with the Malaysian Research Institute of Ageing (MyAgeing) of Universiti Putra Malaysia (UPM) finds that public sector retirees' total economic contribution is estimated to be about RM11.7 billion.

According to the survey, retirees are engaged in productive activities, but these were mostly self- and family-focused activities with less time spent on community activities like volunteering or teaching.

KWAP's director of corporate strategy and performance department Ismail Zakaria said economic contribution from the retirees is notional in nature, given that productive activities undertaken by retirees are in terms of taking care of their spouse, family, or grandchildren.

He elaborated that there's value generated from it, due to not needing to employ caretakers such as foreign maids and others

"If you hire these people, there is a value that you have to pay. Since many retirees are doing it themselves, so this is how much is the value is," Ismail added.

MyAgeing's project leader and director Professor Dr Tengku Aizan Hamid highlighted that the RM11.7 billion value is part of the household production which is never included in the gross domestic product (GDP).

She added that if, in the future, the government intends to account this household production as part of GDP, it would be well above what is being contributed right now.

"Data from the research survey, which polled over 1,600 respondents, highlighted the potential for both present and future government retirees to be harnessed as economic resources even after their exit from the labour force," said KWAP in a statement today.

However, KWAP added the research noted that realising this potential depends on the proper implementation of policies and programmes to elevate levels of retirement preparedness and encourage productive ageing among retirees.

"Although KWAP-MyAgeing 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," said KWAP chief executive officer Datuk Wan Kamaruzaman Wan Ahmad.

Moving forward, Kamaruzaman said KWAP will look into expanding this survey, as it is confident that MyAgeing's research and recommendations will complement the fund's ongoing and future initiatives in the fund's pensioners outreach campaign.

The survey conducted is to study retirement preparedness and productive ageing among government employees and retirees in the Klang Valley.

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