When Malaysia becomes an aged nation…
Ageing nation? We have been one for many years
Do you think there are a lot of people aged 65 and above in Malaysia? Actually, there are. In fact, according to World Bank estimates, Malaysia joined the ranks of an ageing society (with 7% of its population aged 65 and over) in 2020. (source). Nope, this is not a status of Singapore or Thailand. Both these countries became an ageing nation many years earlier than Malaysia. In fact, this situation will get worse because new babies are not being produced fast enough… (read here on latest)
Advanced level for ageing nation? Aged nation. We will be one in 12 years time.
Malaysia will become an aged nation by 2044. This is when 14 percent of our population are aged 65 or higher. This is just 12 years away. This meant that many of the older folks would have to rely on themselves for retirement funds. The reason is because they may have just 1 children who may not be earning enough to support the children’s family, the children’s in-laws (who are also 65 or older) and also to support their own parents. This is already happening in many advanced nations today.
Advanced level for aged nation? Super-Aged nation. We will become one in 34 years.
Okay, this is still some time away. However, when we reach this level, it may also meant that the total population may start to reduce unless of course we have a lot more non-Malaysians staying here. Many countries which are at this level will see its population decline and the demand for goods and services changing totally. Gone are the vibrancy of baby products but the demand would now be for products to cater to the retired communities.
Disadvantages of an ageing population?
Lower or fewer working population. This has been explained above and is not going to be a good sign for the country. Fewer talents also meant that many businesses would cease to exist. As there are fewer people working, the economy of the country may even start to shrink too. This is also why countries with a bigger and younger population would soon become economic super powers in the world. In ASEAN, we have one such ‘giant;’ Indonesia.
With fewer people working, the taxes paid may also be lower and this will strain the government’s ability to spend more for the seniors. There would be too many people without income who would be depending on the people with income as well. This is likely to mean that the older generation will have to manage their expenses extremely prudently as they could not hope for support from others including their children.
Save, Invest and Stop spending unnecessarily?
Savings will never go out of trend yeah. It’s the mother of investment. No investments could happen without savings. However, the key to having enough is not to spend too much. Higher salaried professionals may still be spending a lot more than lower salaried professionals. Last but not least is always, always, always have a roof over one’s head which does not require a never ending rental payments. Otherwise, please earn by far higher amount than the required rental amount.
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