PENSIONERS GET THE CAKE, RETIREES GET THE CRUMBS

'People-friendly'? Not unless it includes all the rakyat, including private sector retirees especially from the middle income group who are struggling with the rising cost of living but are not eligible for welfare or most of the budget goodies. (Photo grab from NST 29 Sept '12)

Let's get this straight. All pensioners are retirees, but not all retirees are pensioners. In Malaysia, it matters which category you fall under after you punch out for the last time at your place of work. If you are a pensioner, your future looks secure. The government will provide for you, AND even after your demise, your spouse is looked after. No wonder our civil service is the biggest in the world in relation to our population. So many perks and handouts!

In Budget 2013 that was announced last Friday, if you are a pensioner you will be out celebrating yet another windfall from the government. If you are not a civil servant retiree, you will be scrapping the bottom of the windfall barrel and searching for whatever miserable crumbs that remain, if any at all.

While I am happy for the pensioners, and I do have many good friends who are pensioners, I sympathize with the retirees especially those from the middle income group. As mentioned in a previous post ("Little for seniors to cheer about in Budget 2012"), they do not qualify for welfare, and neither are they eligible for the one-off perks regularly given out before elections or before Budget Day, or whenever the government feels it's time to make the 1.42 million civil servants happy.

While it is understandable the government must take care of their own, shouldn't it also look after the welfare of other groups as well? What is this 'People First, Performance Now' and all the 1Malaysia sloganizing if not mere lip service? Slogans sound hollow if not backed up by action and results that are visible, not just perceived.

Practically all the senior citizens who were interviewed by the media for their reaction to Budget 2013 are pensioners or are eligible for welfare. Of course, they are overjoyed. And why not? They are grateful to the government for its generosity and heap praise on the PM for thinking of the 'people'.

The small people (the lower income group) are offered one-off perks and budget goodies. The writer should also ask lower middle income retirees from the private sector for their views as well. 

Try interviewing a retiree from the lower or middle income group who is not a civil servant. Ask for his comments on the budget. His answer is probably #%*@!!! - not printable!

Giving one-off handouts is good only for the short term. What happens after the money is gone? I have personally overheard a student asking his friend at a book store what else to buy with their RM200 book voucher from an earlier handout. He had just purchased some stationery and obviously didn't enjoy reading books, much less textbooks for which the voucher was meant. There are also cases of people spending their RM500 voucher on upgrading their electrical gadgets, rather than on necessities. I am sure many of us can quote real life examples of misuse of these vouchers.

Retirees would welcome a discount card like this
one issued by the Queensland government.

So what are we asking for? Many retirees are depending on their savings to tide them over the next 10-20 years of retirement. Unless they have at least RM1 million saved, and unless their health continues to be good, paying for daily expenses, utilities, and servicing loans will eat into their nest egg.

For a start, the government can issue a seniors discount card to all retirees and pensioners aged 65 and above for the purchase of provisions, petrol, and for payment of utilities. I have two warga emas cards at the moment - one for 50% discount on RapidKL buses and trains (which I use almost every day), and the other (which I rarely use) for a 10% discount for medicines, health supplements and healthcare products purchased at Guardian. What we need is a discount card for purchases at supermarkets and petrol stations. RM200 used to be enough to see our family through a whole week. Now we would be lucky if it tides us over three days.

Mind-boggling numbers - all about spending and dishing out goodies to make the people 'happy'. Where is all this money coming from? According to The Star report, "The proposals (to reduce personal tax by 1%) will reduce the number of individual income taxpayers by 170,000 to 1.7 million as compared to the overall workforce of 12 million.

Handing out goodies like this is NOT sustainable. Total Federal Govt debt is expected to rise by 10.1% to RM502.4 billion. Of this figure, domestic debt accounts for 96.5% or RM484.8 billion. Yet the handouts keep on coming. When is this reckless spending going to stop? When the country goes belly up?

Related posts:

IT PAYS TO BE A CIVIL SERVANT IN MALAYSIA

IT'S RAINING GOODIES IN MALAYSIA

TONY PUA TELLS IT AS IT IS

LITTLE FOR SENIORS TO CHEER ABOUT IN BUDGET 2013

I am a senior citizen, but I am not eligible for any of the above benefits.

I have been scanning the papers to see what goodies are in store for senior citizens in the Budget 2013 speech delivered by the PM yesterday.

Sad to say, the PM has let the warga emas down again. 

Mainly for the lower income group. Nothing much here to help the middle income group meet the rising cost of healthcare and medicine. 

Sure, there is something for everyone, as the PM has promised. But that 'something' is almost next to nothing for senior citizens in the middle income group. If you did not work in the civil service or serve in the armed forces, you don't get to enjoy the perks regularly handed out to pensioners. If you are not on welfare, the six additional centres for senior citizens will not benefit you.

The processing fee for a 5-year passport has been reduced from RM300 to RM150 for those aged 60 and above. Only those still able to travel will benefit from this. It effectively rules out the older elderly. I just renewed my passport and will have to wait another five years to enjoy this 50% discount. Still, this is welcome news. We have to be grateful for any crumbs that fall onto our plate.

Our silver-haired PM will turn 60 next year. Our former PM Dr Mahathir is already 87 years old. He should be championing the cause of senior citizens. Our biggest concerns have been, and will continue to be the rising cost of living and of healthcare.

Sure, there is the BR1M (Bantuan Rakyat 1malaysia) of a one-off RM500 handout to help the needy including senior citizens. But you have to apply for it, and there's no guarantee you will get it.  It's not for the middle income group anyway.

Senior citizens, especially the baby boomers from the middle class, need more financial assistance. With longer life expectancy up to 76 years, they need to have enough savings to see them through their retirement. Many can't afford to retire, but they face age discrimination when they seek re-employment. 

Why am I speaking up for the middle income group? Just because we are retired professionals, it doesn't mean we are financially comfortable, and don't require any government assistance. We are the middle income group that is literally caught in the middle, when it comes to financial commitments. We have elderly parents to care for, and adult children to support. We are the sandwich generation.

Heathcare and medical costs for our elderly parents can run up to tens of thousands of ringgit. As for our adult children, many are still not financially independent. They are either pursuing post-graduate degrees, or have housing loans, car loans and credit card debts to settle. Some need funds to start a business. Who do they turn to for interest-free 'loans'? Mommy and daddy, of course. So there goes our hard-earned retirement savings.

From Malaysiakini

While I can understand the need to help Felda settlers, fishermen, single moms, students, the disabled and even first-time house-buyers, I can't fathom the rationale behind giving PTPTN borrowers a 20% discount on their loan repayment. Neither can I accept any explanation for the RM200 rebate given to youths to purchase smart phones.

Perhaps I have to read between the lines in the PM's budget speech to find the hidden goodies for senior citizens. Perhaps the PM is planning a big surprise to cheer us up before Election Day. Well, don't hold your breath...