PENSION VS KWSP

Prepared By:
INTAN NOORZURIANTY BT ZOLKEFLI

In my opinions, pension has more advantages than KWSP. This is because:

1. Guaranteed future benefits. With pension scheme, we will be guaranteed about the amount that we will be received when we retired at age 56 later. The amount is about half of the final service salary. On God’s will, it will be enough to continue our living before we return to The Almighty Creator.

2. Monthly pension will not only be enjoyed by Government Servants that choose the scheme, but the derivative pension benefit will be only enjoyed by the respected family members.

3. The service reward is also big. Plus, we start our service with Government since us young. This service reward is depends on how long the service and the final salary. So, the longer service with Government means the amount will be bigger.

4. No salary will be cut every month. At early age we need money to buy a house, car and other assets and the cost to raise the children. So, if the salary is cut every month for 11% or 12%, what’s left to be spent?

5. Besides, there are other benefit such as medical benefit from government hospital and death benefit. Other than that, pension officer will be received a pension statement just like any other pension statement received by other government servants.

However, government servants that choose KWSP also have the benefit. They are free to work with any employers. For example, if they are getting a better chance at other places, such as private sector or any other departments, they can resign and still enjoy their total contribution benefit.

In conclusion, both schemes have own benefits itself.