STRUGGLING TO LIVE AFTER RETIRING

South Korean elderly men fill out application forms for employment at a job fair in Seoul on October 22, 2014. Out of work and out of pocket, South Korean retirees are struggling to force their way back into an unwelcoming job market in an effort to supplement meagre or non-existent pensions. -- PHOTO: AFP 

This article from The Straits Times (26 Oct 2014) highlights the plight of retirees in South Korea, but it could just as easily be about retirees in Malaysia and Singapore. They face similar challenges, most of which boil down to the practice of ageism in today's society. Let's hope our government will do more, and quickly, to address these socio-economic issues.

Below are extracts from the article. You can read the full article in The Straits Times (26 Oct 2014).

No easy retirement in South Korea

SEOUL (AFP) - Out of work and out of pocket, South Korean retirees are struggling to force their way back into an unwelcoming job market in an effort to supplement meagre or non-existent pensions.

Kim Min Su, 69, receives a monthly pension of 590,000 won (S$714) – the sole source of income for him and his wife who live in a mini-apartment in Seoul.

“I wasn’t able to put much aside when I was working because nearly all of it went on raising and schooling my four kids,” Kim said after a morning spent scanning job vacancy notices at a Career Transition Centre for the elderly.

Kim, who used to earn more than 4 million won (S$4,840) a month as a head engineer at a manufacturing plant in Incheon, estimates he needs a minimum 2.0 million won a month for living expenses.

Recently, he was introduced to a small company which offered to take him on full-time for 1.2 million won.
“They basically said: ‘You’re old. Take it or leave it’,” he said.

Kim is better off than many, in that he has a little pension and help from his children.

Close to 50 per cent of Koreans over the age of 65 now live in “relative poverty” – meaning their monthly income is less than 50 per cent that of the average household income, according to the state data agency, Statistics Korea.

- ‘Retired’ in early 50s -

Retirement can come early in South Korea, with many companies pushing staff out in their early- or mid-50s. Most of those have no option but to look for work elsewhere, and the average effective age at which South Korean men actually leave the workforce is 71.1 years – the second highest in the OECD behind Mexico.

One 71-year-old at the Career Transition Centre in Seoul was still looking for work. “It used to be quite easy for elderly people to get simple jobs, working as gatekeepers or watchmen,” said Kim Yong-Sik. “These days, however, they won’t even look at you if you’re over 65.”

Like a large number of retirees, Kim tried to go into business for himself, using his severance lump sum of 130 million won in 1998 to open a home appliance store with his nephew.

The venture folded three years later and since then he’s got by as a low paid odd-job man. He and his wife now earn 200,000 won a month, supplemented by a 300,000 won handout from their children.

“It’s not nearly enough, but we’re lucky in that we’re both healthy and don’t have any real medical costs,” he said.

The government does provide new skills training but Kim said the courses weren’t really age appropriate. “I was given a six-month course on computer web design, which was a total waste of time, as nobody is going to hire somebody my age for that kind of work,” he said.

“A lot of people were left behind by the rapid technological development, especially in information technology,” said Lee In Su who heads the Korean Society of Welfare for the Aged.

Even those forced into retirement in their early 50s find it hard to get a second career going, and many choose to try it alone, sinking their savings and separation packages into a small grocery store or restaurant.

According to Statistics Korea, half of all self-employed, small business owners are now over the age of 50.

“About 900,000 retirees flood into the self-employment sector every year, causing cut-throat competition,” Finance Minister Choi Kyung Hwan said in September.

“The struggling owners of these businesses are one of the biggest structural problems in our economy,” Choi said, noting that many are left destitute when the business collapses.

In an effort to keep more people working for longer, legislation was passed in April that would ensure no worker – effective 2016 – would be obliged to retire before 60.

And in May, the government, employers confederation and unions signed a pact, encouraging firms to adopt a wage-peak system, that would allow workers to stay on longer but at a steadily reducing salary.

REALLY, FOR PRIVATE SECTOR RETIREES, WHAT'S THERE TO SMILE ABOUT?

Front page of the New Straits Times (13 Oct 2012)

Here we go again. Sigh. Clarification needed one more time.

In Malaysia, the term 'pensioners' refers to retired civil servants, and 'pension' refers to a sum of money that the government pays each month to those who have retired from government service at the age of 55 (now extended to 60).

Pensioners do not include people who have retired from private companies. So it is misleading to say that "retirees earning more now...thanks to improvements to the pension scheme". In fact, if you were to ask private sector retirees, most of them will tell you they have nothing much to smile about.

(Above: Obama is reaching out to the middle class in his re-election campaign.)

There is no private pension at the moment. What private sector employees get when they retire is a lump sum withdrawal of their EPF (Employees Provident Fund) savings. That's it. Period. This amount (or whatever is left if partial withdrawals have already been made for medical expenses, children's education, etc) has to sustain them for all 10-20 years of retirement. The middle class who are not eligible for welfare, subsidies and handouts, are finding it a challenge to cope with the escalating cost of living.

Enough said. Just read earlier post "Pensioners get the cake, retirees get the crumbs".

If you can't read the small print, click here to read the full article.

Let's crunch some numbers.

Based on the National Population Census 2010, we have a population of 28.3 million. Of this number, 2.25 million are aged 60 and above.

Our civil service is 1.42 million strong. The number of pensioners now stands at 662,000. That means we have a total of 2,082,000 citizens who are grateful to the government for taking good care of them and their families.

The remaining 168,000 are retirees, but not pensioners. Excluding those from the lower income group who are eligible for financial assistance, this leaves only a small number of retirees from the middle income group who are unhappy with the government. They feel they have been neglected. Is this number too insignificant for the government to be concerned about in the bigger scheme of things?

What do all these numbers mean? What do they translate into?

Well, draw your own conclusions.

GETTING OUR PRIORITIES RIGHT

Calls for help. Is the government listening?

Of late there has been a spate of letters in the papers lamenting the lack of financial assistance for retirees and pensioners. Marie Lee's letter highlights the many difficulties seniors face in their retirement. This is not something new, but reading some of these letters, you can feel the desperation and frustration underlining these pleas. But are the relevant authorities taking note?

Giving a Rm100 voucher to senior citizens to go shopping for provisions is but a publicity exercise to make the government look good. Not that they are not appreciative, but it's only a one-off gesture. There has to be a sustained program of financial aid. I have disabled friends who receive only Rm300 in monthly welfare aid. They tell me it's barely enough to cover utilities, let alone food and shelter. (Pic: The Star)

On the other hand, we read about the billions that have been siphoned off from the public coffers through corrupt practices or that have gone down the drain through poor, short-sighted investments. It is painful to read about how some ministries are squandering away taxpayers' money.

Take for example the recent announcement that the government is considering purchasing 10 Eurofighters that cost Rm3 BILLION each. What are they thinking? Why is there a need for the latest in combat aircraft? We are a small country with no known enemies. Who would want to attack us? Let's hope this preposterous idea remains nothing more than just a pipe dream of the Defense Minister.

Unless you are drawing a pension of at least Rm1500 when you retire from the civil service, your pension won't be enough to meet your living expenses, especially if you are the sole income-generator in your family. The majority of pensioners, numbering 557,033 in 2007, (probably close to 600,000 by now), are on the lower salary scales, and trying to make ends meet on monthly pensions of less than RM1000. Bear in mind the poverty level is RM720.

The worst hit are retirees from the lower and middle income group who are either self-employed or have worked for the private sector. Their EPF savings alone are not enough to meet their financial commitments as well as cover daily expenses for the next 20 years assuming they live to 75.

Those in the 60s age group are caught in the middle between having to support their children and taking care of their elderly parents, with hefty tuition fees on one hand, and high healthcare expenses on the other. There's also their own insurance premiums and housing loans to pay as well. That's enough to bring on a heart attack!

This group of retirees are not eligible for government aid. They have difficulty finding re-employment. Most companies still practise age discrimination when hiring staff. Going into business isn't that simple when you lack capital and the banks won't give you a loan. They consider you a high risk, again because of your age.

With the cost of living escalating, surviving the "golden years" may require us to look outside the box for that elusive pot of gold.

DO'S AND DON'TS FOR RETIREMENT

This article has been making the rounds on the Internet for some time. I believe it's written by a Singapore retiree. Excellent advice that should be shared.

4 Pre-Conditions for Retirement

I retired in year 2000 at age 52. I am now 61, thus I can claim that I got more experience at retirement than most!

I thought I should share my experience because I have seen too many friends and neighbours who became so bored that they have become a nuisance to their spouse and children and to others!

A few of them have solved the problem by going back to work. They were able to do so because they have a skill/expertise that is still in demand.

The rest (and many are my neighbours) live aimlessly or are waiting to die - a very sad situation, indeed.

You can retire only when you fulfil these 4 pre-conditions:

1) Your children are financially independent (e.g. they got jobs),
2) You have zero liability (all your borrowings are paid up),
3) You have enough savings to support your lifestyle for the rest of your life,
AND most importantly,
4) You know what you would be doing during your retirement.

DO NOT retire till you meet ALL 4 Pre-Conditions.

And of course you should not retire if you enjoy working and are getting paid for it!

The problem cases I know of are those who failed to meet Pre-Condition #4. When asked, "What would you be doing during your retirement?" some replied, "I will travel/cruise and see the World". They did that, some for 3 months and then ran out of ideas....

The golfers replied, "I can golf every day." Most could not because they are no longer fit to play well enough to enjoy the game.

Those who could, need to overcome another hurdle - they need to find the "kakis" to play with them. It's the same with mahjong, bridge, badminton, trekking and karaoke - you need "kakis"!

Most could not find others who share their favourite game and playing/singing alone is no fun. AND when they do find them, a few of them found that they are NOT welcomed like my obnoxious neighbour whom everyone avoids.

Thus if you are into group sports or games, you must form your groups BEFORE you retire. You need to identify your "kakis", play with them and discover whether they "click" with you.

The less sporty "can read all the books bought over the years". I know of one guy who fell asleep after a few pages and ended up napping most of the time! He discovered that he did not like to read after all. We do change and we may not enjoy the hobbies we had.

Routine Activities to Fill Your Week

For most people, your routine work activities are planned for you or dictated by others and circumstances. When you retire, you wake up to a new routine - one that you yourself have to establish as nobody else would do it for you! The routine to establish should keep your body, mind and spirit "sharpened".

A good routine would comprise:

a) One weekly physical sport - you need to keep fit to enjoy your retirement. If you are the non-sporty type, you should fire your maid and clean your home without mechanical aids. Dancing and babysitting are good alternatives.

b) One weekly mind stimulating activity - e.g. writing, studying for a degree, acquiring a new skill, solving problems or puzzles, learn or teach something. You need to stimulate your mind to stay alive because the day you stop using your brain is the day you start to die.

c) One weekly social activity - choose one involving lots of friends/neighbours. Get yourself accepted as a member to at least 3 interests groups. Unless you prefer to be alone, you do need friends more than ever as you get older and less fit to pursue your sport.

d) One weekly community service activity - you need to give to appreciate what you have taken in this life. It's good to leave some kind of legacy.

With 4 weekly activities, you got 4 days out of 7 covered. The remaining 3 days should be devoted to family related activities. In this way, you maintain a balance between amusing yourself and your family members.

Any spare time should remain "spare" so that you can capitalise on opportunities that come your way like responding to an unexpected request to do a job or to take advantage of cheap fares to see places or to visit an exhibition.

Mind stimulating activities

In "Today" paper you would have read of 2 inspiring oldies. One is a granny who learned to play the guitar at age 60 to entertain her grandchildren. She's 70+ today and those grandchildren have grown to play with her.

Another is an Indian radiologist who on retirement, qualified as an acupuncturist. He's age 77 and still offers his services (by appointment only) including free ones to those who have no income. I guarantee you that they are happy people who discovered a "2nd wind" to take them to the sunset with a smile on their faces.

Mind stimulating activities are hard to identify. They require your will to do something useful with the rest of your life, a mindset change and the discipline to carry it through.

Your Bucket List

Despite your busy routine, you will at times be bored. Then it's time to turn to your Bucket List. Your bucket list contains a list of things to do before you kick the bucket. They are not routine and are usually one-off activities.

You need them to have something to look forward to.

These include anniversaries, trips (and pilgrimages), visits to friends and relations abroad, re-doing your home, attending conferences (related to your hobbies), acquiring a new set of expertise.

4 such activities that are spaced out quarterly would be ideal.

Retirement Is A Serious Business

If you can afford to retire and want to, do prepare to live to your fullest. You need to be fit to enjoy it - therefore get into shape now.

You do not want to get up on a Monday and wonder what to do each week. Therefore identify your set of weekly routine activities now and try them out to confirm that they are the activities that you will be looking forward to doing each week, week after week.

Your bucket list of "rewards" or "projects" or "challenges" is needed to help you break away from the routine thereby make life worth living. Start listing what you fancy and refine it as you chug along in your retirement.

You will have so much fun you would wish you were retired since you turned 21!

AT 55, ARE YOU READY TO RETIRE?

StarMetro interviewed me a few days ago for my views on retirees and re-employment. Here is an extract from the Star's 27 July edition.

Are retirees choosy when it comes to salary and fringe benefits and does that make it difficult for them to get employment?

Retiree Lily Fu, 62, a trainer with Wawasan Open University teaching learning skills, said retirees should make themselves more employable like by picking up new skills or obtaining extra qualifications.

“They must find out the kind of industries that need them and never think of themselves as useless.

“Even if they cannot get a job, why not look into other alternatives like turning their hobbies or passion into one, like baking?” said Fu.

Fu, a retired teacher, said the principal had wanted her to stay on. She, however, had other plans like wanting to do something new, like training teachers.

Being interviewed for StarMetro

She lamented that there was lack of government support to push the private sector into recruiting retirees, unlike Singapore which had a special portal and even job fairs held to employ retirees.

“There is also the Advantage! scheme that offers financial grants of up to S$400,000 to companies registered or incorporated in Singapore supporting initiatives that directly boost the recruitment, retention and re-employment of matured workers,” she said.

Click here for the full article.

Related articles:

AN OPTION FOR OLDER WORKERS: TO BE RETIRED OR REHIRED

PREPARING TO REHIRE OLDER STAFF

WHY I BLOG

(The Malay Mail did a full page write-up about me in 2008. I've reproduced a slightly edited version here to answer some of the many queries I've been receiving about the blog. A note of thanks to those of you who attended SeniorsAloud's first offline community event this morning. It was a huge success! )

By GABEY GOH
MALAY MAIL August 12, 2008

THE digital divide is getting smaller as more and more senior citizens take that first tentative step into the world wide web, to explore, express and learn.

Surveys have revealed that senior citizens aged 65 and above make up the fastest growing age group online, but as the number of users grows, the amount of content to cater for them remains a step or two behind.

This is where people such as Lily Fu, a 60-year-old grandmother of four, come in. She launched her blog, SeniorsAloud (seniorsaloud.blogspot.com) in May with one goal in mind.

"I wanted to provide senior citizens with an avenue to network online and share their life experiences. We believe in active ageing, and in living our golden years with passion and purpose," writes the part-time university tutor and English Language trainer. With a host of guest bloggers, topics relevant to the elderly are frenetically discussed to give the senior citizens a voice on the web.

When did you start using the internet?

I was first introduced to the Internet in 1994 when I was visiting my daughter in Canada. One night, I saw her emailing and chatting with her university friends online. I was amazed. What a great way to keep in touch – so much faster than by conventional mail, and far cheaper than paying for long distance calls.

Soon after, I bought my first desktop. As a high school teacher then, I was interested in using the Internet to supplement my English classes. I started a chat-room on IRC for my students in 1996. I believe we were among the early schools with an online presence. I’m quite proud of that.

How did you start to blog?

When I first read about blogging in 1999, I was keen on starting a blog for those over 50 years of age, being in that age group myself. I wrote to a newspaper about it, hoping to get positive feedback. My letter was published but there was no response at all! I guess most seniors in those days were not internet-savvy yet. Now, almost 10 years on, I believe the time is right to start a blog for seniors.

In 2007, a friend, Samuel Goh (motivationinmotion.blogspot.com), who was already a blogger, invited me to an Internet marketing seminar. I started a blog in order to apply what I had learned. SeniorsAloud is my second blog and the first article was posted on May 10, 2008, just three months ago. So it’s quite new, but the response this time around is much more encouraging. As the word gets out, I’m sure the blog will receive even more visitors.

What were your reasons?

It’s a known fact that many countries, including Malaysia, are seeing an ageing population. The average life span has increased. For males and females, it’s 73 and 76 respectively. In 2007, according to statistics from the National Population and Family Development Board (LPPKN), the elderly, or those who have touched 60, make up seven per cent of the population. There are issues concerning the elderly that need to be addressed, like health care, financial management, and housing.

There are also more seniors now with access to the internet and thus a blog would be a great avenue to reach out to these seniors, while also encouraging those who are apprehensive about the internet to take the first baby steps into this whole new realm. It literally opens up a new world, and even those seniors who are homebound can still have an active social and intellectual life via the internet.

On a personal level, I know of retirees who have difficulty adjusting to a life without a 9-5 job. They feel a tremendous loss of self-esteem. Some have lost their spouse and feel lonely and depressed.

SeniorsAloud is intended to be a community-based blog where seniors and retirees can network and share their rich life experiences. It is also a channel for them to speak out on issues that affect them, whether it is the lack of elderly-friendly public facilities, or the discrimination leveled at them. It takes a senior to understand another senior and provide moral support for one another.

What have you achieved through blogging?

The blog is only three months old, so it’s still too early to talk about achievements. But to date, the feedback has been very encouraging. "Inspiring" is the word visitors often used after reading the posts. One visitor in her 30s wrote in an email that the post about "Grandparenting – A Pleasure or Pressure?" helped her to better understand her parents.

Any regrets?

I’ve always wanted to give something back to society. SeniorsAloud is the perfect vehicle for me to accomplish this. I can blog at home and still keep an eye on my grandchildren and my elderly mother. And the best thing is that it’s free! So there’s absolutely nothing to regret. Of course, blogging can be quite time-consuming, but I enjoy the challenge of keeping the blog current.

Has blogging changed your life?

I now carry my camera everywhere I go. I’ve learned to be bold in approaching people and telling them about my blog. You can say blogging has given me new confidence and a new direction in life. Through it, I’ve been fortunate to connect with many seniors who have been most supportive in contributing to the blog content.

The "Blogosphere". What does it mean to you?

The Blogosphere adds a whole new dimension to information gathering – almost anything and everything under the sun probably has been the subject of a blog. That said, one of the challenges of the internet, including blogs, is to sift through all the information out there – sometimes there is an information overload. Nonetheless, it’s always better to have too many options than none at all!

Favourite blogger?

I’ve got several bookmarked under "Favourites", so I won’t commit to singling out any particular one. It’d be like asking me who is my absolute favourite among all my grandchildren. I love them all.

If there were someone you could influence to blog. who would they be?

Definitely all those above 50! This is the fastest growing age group on the Internet, but certainly not in Malaysia. I still meet a lot of seniors who say they are too old to pick up computer skills, or they are simply not interested. Blogging is fun, mentally stimulating and who knows, it may help ward off Alzheimer’s!

When I’m in my 80s or 90s, provided I don’t have arthritis in my fingers, I intend to carry on blogging. I’ll take blogging anytime over knitting in a rocking chair!