( Kuala Lumpur, 5th June 2020 ) Allianz Insurance Group (Allianz) global report shows that among 70 countries and regions in the world, the Malaysian pension system is only ranked 61st in the last paragraph, and there is still significant room for improvement.
In terms of Asian countries and regions, Malaysia ranks 12th, not only inferior to China (1), but also inferior to neighboring countries such as Indonesia (4), Singapore (6), Philippines (7) and Thailand (10).
Allianz Insurance Group issued a statement saying that Malaysia’s pension is at the bottom of the “sustainability” ranking (70).
The group added that the government has not adjusted the retirement age or pension ratio for the extension of people’s life expectancy, which affects the “sustainability” score. This may be because the Malaysian population is relatively young, and the financial adjustment space and demographic changes remain stable. No pressure to change retirement age or pension ratio.
The group pointed out that in the Allianz Pension Index (API), Malaysia's financial adjustment space and demographic changes ranked fifth among 70 countries and regions.Allianz Insurance Group pointed out that although Malaysia has a mandatory pension plan for employees of private companies, the coverage of employee provident fund (EPF) is still relatively low. In the "adequacy of pension" rating, Malaysia ranks 51st.
The group believes that despite the government's efforts in recent years to raise people's awareness of private pensions, Malaysia's private household net financial assets to GDP ratio is only moderate.
In addition, Allianz Insurance Group said that Malaysia also has room for improvement in terms of financial channels and financial knowledge.
Allianz Insurance Group concluded that Indonesia and other neighboring countries with similar population and financial conditions are reforming the pension system, and Malaysia is also catching up.
Top 10 Global Pensions:
1 Sweden
2 Belgium
3 Denmark
4 New Zealand
5 United States
6 Australia
7 Netherlands
8 Norway
9 Bulgaria
10 Canada
61 Malaysia
Top 10 Asian Pensions:
1 China
2 Taiwan
3 Japan
4 Indonesia
5 Korea
6 Singapore
7 Philippines
8 India
9 Hong Kong
10 Thailand
12 Malaysia
**Info & Image are taken online
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