Insurance Association calls on government to promote financial planning
2009/10/19
Source: NST Online
The Life Insurance Association of Malaysia (LIAM) hopes the Government will provide more incentives to promote financial planning among Malaysians.
In a statement, LIAM proposed the establishment of a private pension scheme and separate relief for life insurance premiums.
"With higher life expectancy, the government should consider establishing a private pension scheme to enable the working population to plan for their retirement.
"After retirement, a wage earner must ensure that there is sufficient savings to last another 20 to 30 years, and relying on Employees Provident Fund (EPF) savings alone was insufficient," it said.
LIAM said there was a large group of self-employed (about 25 per cent of the working population) who may not have any retirement savings.
"As such, there is a need to fill up the retirement income gap and this can be done through the establishment of a private pension scheme, it said, alluding to Budget 2010 to be tabled on Friday.
It said to encourage more Malaysians to buy life insurance policies, the government should provide a separate tax relief of RM6,000 for life insurance premiums.
"Currently, the percentage of individuals with life insurance coverage, education and retirement savings, medical and health protection is still at a low of 41 percent of the population," it said.
LIAM said at present, the personal tax relief of RM6,000 was combined with the statutory EPF contribution, which meant that an individual earning RM4,500 per month and above would not be entitled to claim any tax relief for life insurance policies.
"Malaysians now have higher wages and the current combined tax relief of RM6,000 is grossly inadequate," it said.
It also proposed the current tax relief of RM3,000 for child education and medical insurance be increased to RM6,000. - Bernama
Source: NST Online
The Life Insurance Association of Malaysia (LIAM) hopes the Government will provide more incentives to promote financial planning among Malaysians.
In a statement, LIAM proposed the establishment of a private pension scheme and separate relief for life insurance premiums.
"With higher life expectancy, the government should consider establishing a private pension scheme to enable the working population to plan for their retirement.
"After retirement, a wage earner must ensure that there is sufficient savings to last another 20 to 30 years, and relying on Employees Provident Fund (EPF) savings alone was insufficient," it said.
LIAM said there was a large group of self-employed (about 25 per cent of the working population) who may not have any retirement savings.
"As such, there is a need to fill up the retirement income gap and this can be done through the establishment of a private pension scheme, it said, alluding to Budget 2010 to be tabled on Friday.
It said to encourage more Malaysians to buy life insurance policies, the government should provide a separate tax relief of RM6,000 for life insurance premiums.
"Currently, the percentage of individuals with life insurance coverage, education and retirement savings, medical and health protection is still at a low of 41 percent of the population," it said.
LIAM said at present, the personal tax relief of RM6,000 was combined with the statutory EPF contribution, which meant that an individual earning RM4,500 per month and above would not be entitled to claim any tax relief for life insurance policies.
"Malaysians now have higher wages and the current combined tax relief of RM6,000 is grossly inadequate," it said.
It also proposed the current tax relief of RM3,000 for child education and medical insurance be increased to RM6,000. - Bernama
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