A Personal Finance Blog for Malaysian: Who should look after your financial health at retirement?

Friday, November 5, 2010

Who should look after your financial health at retirement?

In year 2010, worldwide governments are finding it difficult to finance (pay) pensions.

Many countries has proposed to increase retirement age (mainly for civil servants). The current retirement age for some countries as follow:

  • Malaysia 58 (from 56 to 58 in year 2008 and going 60 as proposed by Cuepacs)
  • Singapore 62 (going 65 in 2012)
  • Thailand 60
  • Brunei 60
  • Indonesia 60
  • Holland 67 (going 70)
  • Franch 60 (approved to 62 recently)
  • Germany 65 (going to 67)
Why governments around the world extend (delaying) the retirement age?
First reason, rising cost of pension for the government as population is aging. Second, rising life expectancy contributes to higher costs of pension.

These governments has no choice but to pass a law to effect it, therefore, effectively these civil servant have to work till they drop. I just can't imagine the most civil servant still able to perform at the age of 60 in Malaysia.

Therefore, a message to all the readers, take care of your own retirement, don't depends on government and employer.