The first 30 minutes of the video With EPF’s Nurhisham Hussein – Malaysia’s Retirement Crisis Is Already Upon US

Notes : The first 30 minutes of the video With EPF’s Nurhisham Hussein – Malaysia’s Retirement Crisis Is Already Upon US

Just sharing my notes from the video. I Advice to listen to the video yourself to have the full picture about what is being discussed. This notes is based on my personal level understanding and listening capability

From the beginning :

Employees under EPF about 8.4 million people

Civil Service 1.6 million

So, in total, covered about 10 million

That leaves 6 million people who are not covered by anything

These are working age population in labour force

Working age population as a whole is close to 24 million

-???????Students

-???????Unpaid family workers (housewives – about 2 million housewives)

Basic Savings Requirement

Your minimum pension for 20 years

RM 1000 a month for 12 months

How much is the cost to retire??in the cities?

RM 580,000 in KL – for a senior couple

-???????Not accounting for inflation

-???????Not accounting for investment

-???????For 20 years

-???????Only for living expenses

-???????Doesn’t include medical, critical illness and also with the assumption that they have their own home

The tail risk, if you live beyond 75 years old

40% of women and 30% of man will live exceed 80 years old

Among EPF members, only 3% out of 15 million members made it to RM 580,000

Urban centers are getting younger and outlying states are getting older. Internal migration where young people come to cities to work and people who left behind, they have less support

We are dealing with a few trends :?

1.?????Ageing?

2.?????Changing patterns of economic behavior. People are getting married less, they have less children. The demands on the (lesser) children will be a lot greater

Expenditure per child today about RM 900 to RM 1000 per child

-???????Doesn’t include education – future education savings?

1/5 Malaysians are at the age of 30 to 40 years old?

-???????You’re making your first big commitment

-???????Buying a house, starting a family, bringing children into the world, paying for their education, healthcare,?

-???????You could be a T20 household, earning maybe RM 15,000 a month. But if you got children and you’ve house to pay for, you got education to pay for, you are not actually very well off, it gets very tight, and compare that with a single person who’s living with RM 4000 per month who will be categorized as B40, he’s not necessarily poor because he has got no dependence.

At the height of Covid 300,000 unemployed

2 to 3 million employees are under furlough?

Under Socso, unemployment benefit issuance, the peak was at 170,000

In EPF, national level median income wise RM 2300 per month. 3 years ago it was less than RM 2000 per month

Growth of income slowest between RM 2000 to RM 4000?

Only 20% or less of labour market has a degree

The median Malaysian worker is someone with SPM and probably been working for 15 years

Current generation seems a bit stuck. This is probably the first generation in Malaysia where you might not be better off than your parents

Losing value against the dollar is a global phenomenon. The dollar has been strengthening against everything

Singapore monetary policy requires them to appreciate against reserve currencies

Hyperbolic discounting?

-???????The present bias

-???????You spend your money now and you don’t plan for future

1 million EPF members between 45 to 55 years old, have less than RM 50,000 ringgit

Property inequality. Where are you have extremely high prices of properties in certain areas. Disparity in property values between urban and rural

Coming to children education. Understanding the purpose of education. Understanding how the brain develops

Foregoing instant gratification – This is built into a person between the age of 3 to 5 years old

Cognitive skills starts at the age of 6 to 7 years old

Financial literacy survey done. In Singapore, 70% of people pass the test. In Malaysia, 29% pass the test

My notes stops at around minute 35 to 38. More being discussed?

Really interesting interview and discussion. Let me know if I have made any kind of mistakes to my notes. Thank you

I share with you guys the link to the video in the comment section