Tag Archives: CareTRUST

What Does Akaun Emas Mean For Your Long-Term Care

Early November 2016, news of the Employees Provident Fund (EPF) officially initiating Akaun Emas was announced in newspapers and is set to be effective on January 2017. The specifics of how the Akaun Emas works is clear. When you reach the age of 55, an Akaun Emas will be opened if you continue to be employed. From age 55 onwards, your EPF contributions will be entered into the account and locked. You may only withdraw the accumulated money from the account upon turning 60 years old.

Your previous contributions – prior to turning 55 – will be consolidated from your Account 1 and 2 into one account called the Akaun 55. Money within your Akaun 55 can be withdrawn as a lump sum, monthly, partial, monthly and partial or annual dividends withdrawals.

At age 60, money from both your Akaun 55 and Akaun Emas will be combined to one account for withdrawals.

According to the EPF’s chief executive, Datuk Shahril Ridza Ridzuan, the purpose of the newly launched Akaun Emas is to be a second retirement nest egg for their members to further help serve their needs when they retire.

Whatever the concerns, the real question still remain; do you have enough money for your aged care and have you planned for it?

The Gold in Akaun Emas

To better understand if you would have saved enough for your aged care, let’s take a look at a case study. Mr Tan, 54 years old, is the sole breadwinner of his family with one wife and two children who are currently entering university. He is a full-time employee at Company X earning RM6000 a month. As soon as Mr Tan turns 55 years old in January 2017, his EPF account 1 and account 2 are consolidated into his Akaun 55, he proceeds to make a full withdrawal to pay for his children’s tertiary education. Still healthy and able, Mr Tan continues his employment with Company X and an Akaun Emas is opened for him.

He continues working when at the age of 60 he is stricken with 4th stage liver cancer. Throughout his employment, both Mr Tan and his employer’s contribution to his Akaun Emas remain at 11% and 12% respectively. With an average of 6% dividends from EPF, Mr Tan had accumulated RM 101, 675.79 in his Akaun Emas. Note that calculations are made based on the formula below from iMoney’s article “What Does The 6.40% EPF Dividend Mean To Your Savings?”

 

Formula for Annual Dividend Calculation

Opening Balance x Dividend Rate (6%) x 365 ÷ 365 (for full Year)
Formula for Monthly Dividend Calculation

Total contribution for Account x Dividend Rate (6%) x (Total number of days in the year – Number of accumulated days for the month + 1) ÷ Total number of days in the year

 

Mr Tan undergoes surgery and is hospitalised for 90 days before being discharged with the cost being covered by his insurance plan. Now in need of care, Mr Tan utilises money from his Akaun Emas to pay for care services and various supplies for daily living. However, Mr Tan knows his recovery from liver cancer remains unpredictable and worries for his family’s financial situation as his savings (and money from his Akaun Emas) can only last for so long.

 

The Cost of Care

In terms of the cost of care, how much is Mr Tan looking at? You may not necessarily identify with Mr Tan’s position if you have a fair bit more than Mr Tan from your savings and other investments. You might even be in your 60s and still healthy. Perhaps your children will pay for your healthcare costs. As evident by the recent increase in rates for first and second class wards in government hospitals, healthcare costs are rising and with the risks of living longer, you should still consider the cost for care as shown below:

 

 

If your cost of basic care for 5 years is RM 240 000 – excluding inflation, longevity risks, and unforeseen healthcare problems – does your savings sufficiently account for these costs? Despite the great boost in EPF savings the Akaun Emas provides for retirement, it can only cover for your care costs for 2 years (plus a little more if you include your savings) if you have similar circumstances as Mr Tan.

The Akaun Emas is a safe investment as the EPF – which guarantees a minimum dividend rate of 2.5% – has been performing well, as evident in the dividend rates given out being 4.25% – 6.4% over the last 15 years.

However, statistically many who reach the retirement age of 55 (68% of EPF members) have savings less than RM 50,000 and many retirees spend their all of their EPF savings within 5 years.

Furthermore, Malaysians are living longer lives with males and females at age 65 living up to 14.9 and 16.9 years longer respectively in 2015 than previously in 2010. That means the possibility of needing some form of care is inevitable hence planning for such is crucial and also to avoid placing unnecessary burdens on our children.

 

What Other Options Do I Have?

An option to ensure your savings and retirement plans are appropriately prepared for your aged care needs to put some of your savings into a CareTRUSTTM account. CareTRUSTTM is a living trust that gives:

  • Safety – Your money will be invested in a cash management solution offered by KenWealth by Kenanga Investment Bank. While the default fund has low risk, though you have the absolute discretion to switch and choose from the range of investment products offered by KenWealth.
  • Integrity – Rockwills Trustee Bhd (as the trustee) will safeguard your interests and only act on instructions to pay for your care needs.
  • Care Administration – You will have access to Care Administration to provide you with the right care and the right service at the right place and right time. Managedcare Sdn Bhd will assign you a Care Manager who will ensure the quality of care you receive is in sync with the appropriate healthcare and long-term care plan; based on care needs and financial affordability.
  • Coverage for loved ones – Your nominated Lifetime Beneficiaries can also benefit from CareTRUST™ account. can have 2 beneficiaries
  • Consolidated Assignments – You can assign your insurance policy to the CareTRUST™, allocating more of your money for your care.
  • Unclaimed Money Protection – Any remaining balance not spent in CareTRUST™ will be given to your nominated beneficiaries.

 
It pays to carefully consider what are your options for retirement and how your financial decisions influence your aged care. Though the Akaun Emas lock-in period is compulsory, you can still take proactive steps to plan for your retirement and aged care with your Akaun 55 savings to ensure your long-term care concerns are accounted for.

The Akaun Emas is focused on your retirement, but the accumulated money will not be enough to cover the cost of long-term care that we will inevitably encounter. There is also the risk of not being able to make our own decisions due to circumstances like dementia and etc. It is good to have another option which is safe, specifically focused on care, and will assist your decision-making to mitigate difficult situations arising from being of unsound mind.

 
First Published in Smart Investor, December 2016, Issue 320

Innovating Care For The Elderly

THURSDAY, 24th November 2016: As nations across the globe move towards an ageing population, it is becoming more imperative for the aged care industry to innovate itself in order to better cope with increasing demands and changing needs. In Singapore, Innovating Care Asia Pacific hosted the Elderly & Home Care 2016 forum, providing a platform for decision makers, practitioners, researchers, service providers, and community members to share their experiences to support and empower rapidly ageing populations worldwide.

Amongst speakers from various organisations, which included Eldercare Singapore, HoviCare Finland, ACCESS Health international and many others, CEO of Aged Care Group, Carol Yip gave the audience insight into Malaysia’s ageing climate. In her presentation – titled “Malaysian Insurance and How CareTRUST™ – A Living Trust Provides Financial Stability Towards Your Aged Care” – Carol spoke on Malaysia’s need to identifying sustainable mechanisms to providing financial safeguards for it’s ageing population, the challenges facing Malaysia and how the CareTRUST™ – launched in Malaysia in February 2016 – will help Malaysia cope with the demands of its’ growing ageing population.

Launched a comprehensive plan in Malaysia for Retirement Care called CareTRUST™

Kuala Lumpur, 24 February 2016 – The Collaboration Agreement Signing Ceremony was held today between Kenanga Investment Bank, Managedcare and Rockwills® Trustee for the launch of CareTRUST™

CareTRUST is a living trust where an individual can set money aside to ensure provision of continuum care that is financially sustainable in the event of failing health and or long term retirement care.

photo-1

The aim of CareTRUST™ is to address the nation’s ageing demographics and to provide the public an effective solution for the administration of care. It embodies a shared vision among all three organisations to create an integrated framework that will spur a catalytic change in retirement and aged care that will elevate the industry to be on par with other regional countries.

Managedcare is the care administrator of CareTRUST™ and will be responsible to ensure the quality of care given to clients will be in sync with the client’s health needs and long-term care plan. CareTRUST™ shall be focusing on both the younger generation (GenY) as they need to plan from now for an effective retirement care plan as well the babyboomers who need such care plan now and the new future.

photo-3

According to Carol Yip, CEO of Managedcare, “There is a void to fill in the Malaysian financial planning space for sustainable retirement care. We believe that through the introduction of CareTRUST™, complemented with it unique characteristics of integrating various care services, we will narrow the gap and provide the type of care Malaysians are looking for. CareTRUST™ aims to address issues such as longevity risk, medical inflation, insufficient savings and high cost of living. The possibility of needing long-term care is very real as we move towards an ageing society. This collaboration sets a strong foundation to assist individuals in attaining sustainable financial affordability to purchase an array of quality care services.”

“KenWealth” by Kenanga Investment Bank Berhad as one of the collaborating partner is committed to providing sustainable retirement investment solutions to all Malaysians. Ismitz Matthew De Alwis, CEO of Kenanga Investors Berhad mentioned that this collaboration marks a new milestone for the retirement and aged care industry to fulfil the need for an integrated financial and healthcare framework especially for the ageing population.

Rockwills Trustee is the independent trustee for CareTRUST™ and is given custodial rights to manage the funds. As a Trustee they will safeguard the client’s interests by monitoring and disseminating the monies for care according to their client’s instructions.

For further enquiries regarding CareTRUST™ you can visit www.managedcare.com.my or send an email to info@managedcare.com.my.

Source: InfoMed, February 25, 2016

Managedcare Inks Collaboration Agreement with Rockwills®Trustee and Kenanga

CareTRUST™, A Living Trust For Your Care Needs

KUALA LUMPUR, 24 February 2016: – Managedcare Sdn Bhd (“Managedcare”), a wholly-owned subsidiary of Aged Care Group Sdn Bhd, today inked a Collaboration Agreement for the launch of CareTRUST™ with Rockwills Trustee Berhad (“Rockwills Trustee”) and the Wealth Management arm of Kenanga Investment Bank Berhad (“KenWealth”).

CareTRUST™ is a living trust where an individual’s monies are set aside to ensure provision of continuum care that is financially stable in the event of failing health and or long term retirement care. The collaboration aims to address the nation’s ageing demographics and to provide the public an effective solution for the administration of care. It embodies a shared vision among all three organisations to create an integrated framework that will spur a catalytic change in retirement and aged care that will elevate the industry to be on par with other regional countries.

As the Care Administrator for CareTRUST™, Managedcare will be responsible to ensure that the quality of care received is in sync with the client’s health and long-term care plan. They will coordinate, monitor and administer a variety of healthcare and service provisions to ensure optimum value of care for our clients’ overall wellbeing.

According to Carol Yip, CEO, Managedcare, “There is a void to fill in the Malaysian financial planning space for sustainable retirement care. We believe that through the introduction of CareTRUST™, complemented with its unique characteristics of integrating various care services, we will narrow the gap and provide the type of care Malaysians are looking for. CareTRUST™ aims to address issues such as longevity risk, medical inflation, insufficient savings and the high cost of living. The possibility of needing long-term care is very real as we move towards an ageing society. The collaboration sets a strong foundation to assist individuals in attaining sustainable financial affordability to purchase an array of quality care services.”

Ismitz Matthew De Alwis, CEO, Kenanga Investors Berhad speaking on behalf of KenWealth, “This collaboration marks a new milestone for the retirement and aged care industry to fulfil the need for an integrated financial and healthcare framework especially for the ageing population. At Kenanga, we are committed to providing sustainable retirement investment solutions to all Malaysians.

Rockwills Trustee is the independent trustee for CareTRUST™ and is given custodial rights to manage the funds. As a Trustee they will safeguard the client’s interests by monitoring and disseminating the monies for care according to their instructions.

CareTRUST™ encourages Malaysians to sustain a decent post retirement lifestyle and sufficient funding for their long term care needs. With an ageing population, the imminent growth of the retirement and aged care industry makes it an attractive endeavor. For organisations and individuals who are interested to participate in this ecosystem which offers tangible opportunities can engage Managedcare at info@managedcare.com.my.

For more information on CareTRUST™, please visit www.managedcare.com.my today.

For media assistance, please contact:

Managedcare Sdn Bhd
Corporate Affairs
Tel: 03-2142 7166
Email: Shalini@agedcare.com.my
Website: www.managedcare.com.my

K & N Kenanga Holdings Berhad
Group Marketing & Communications
Chuah Sze Phing / Tracy Anne Leong DID: +603 – 2079 1293 DID: +603 – 2079 1332
Email: szephingchuah@kenanga.com.my / Email: tracyleong@kenanga.com.my

 


 

About Managedcare Sdn Bhd

Managedcare is in the business of coordinating a variety of healthcare and long-term care services as well as the administration of these services to achieve optimum value in terms of quality and affordability.

We bring to market products and services that ease the provision and access to care, giving you the peace of mind you deserve. Our vision is to meet the growing demand of care at a price, quality and vicinity/locality that is sustainable for different income levels.

We strive to achieve our vision by providing a one stop platform that delivers information on health and aged care related services & products and maximising the provision of the client’s care in terms of cost efficacy, volume, delivery and intensity of services provided.

To know more about Managedcare, go to www.managedcare.com.my.

About Rockwills Trustee Berhad

Rockwills Trustee Berhad is a Trust Corporation incorporated in Malaysia and registered under the Trust Companies Act 1949. Rockwills Trustee is part of the Rockwills Group of Companies. We are committed in providing innovative, comprehensive and professional Estate Planning and Trustee services.
Today, Rockwills Trustee Berhad has more than 70,000 appointments as Executor and Trustee. We are currently managing about RM2 billion worth of assets under trust for our clients.

To know more about Rockwills Trustee Bhd, go to www.rockwills.com

About Kenanga Investment Bank Berhad

Kenanga Investment Bank is a one-stop solution centre offering equity broking and corporate advisory services and strategy to meet business and capital market needs. It is one of Malaysia’s top three stockbrokers*, the largest independent investment bank* by equity trading volume and value, as well as one of the top three brokerage houses in Malaysia.

Our clients enjoy:

  • convenience through more than 30 locations throughout Malaysia
  • one of the largest remisier network in the country
  • comprehensive financial products and services

We offer a wide range of products and services such as corporate and institutional coverage, corporate finance, debt capital markets, equity capital markets, corporate banking, Islamic finance, equity broking, equity derivatives and structured products, treasury as well as investment research and advisory services.

KenWealth is the Wealth Management division of Kenanga Investment Bank that enables the pursuit of financial security through careful strategic wealth management and planning. KenWealth aims to offer a myriad of options, flexible financial planning solutions, and access to a comprehensive range of products as well as tailored financial advisory services.

To know more about KenWealth, visit www.kenwealth.com

* based on 2015 year to date Bursa Malaysia’s Participating Organisations Trading Summary

CareTRUST™ Eyes Beyond 10 Pct Of Aging Population – Kenanga

KUALA LUMPUR, Feb 24 (Bernama) — “CareTRUST™”, Malaysia’s first living trust for retirement, could attract more than 10 per cent of aging Malaysia’s population as subscribers by 2020, Kenanga Investors Bhd Executive Director/Chief Executive Officer, Ismitz Matthew De Alwis said.

The retirement investment solution has a great potential to garner strong demand as the elderly population that expected to increase to 10 per cent by 2020, while other prospective clients in the 40s to 50s will also be targeted, he said.

“For everybody to embrace the whole thing will take time. Right now we are encouraging more participations in the ecosystem in order to have a more established retirement industry.

“In the next three to five years, there would be more connectivity and more stakeholders and players are expected to join the industry,” he told reporters after the launch of ‘CareTRUST™’ here today.

Matthew earlier represented Wealth Management arm of Kenanga Investment Bank Bhd (KenWealth), inked a collaboration agreement with Managedcare Sdn Bhd and Rockwills Trustee Bhd at the launch of the scheme.

Under the tripartite agreement, the fund will be parked at KenWealth, while Managedcare will act as the care administrator, and estate planning specialist Rockwills will serve as the independent trustee.

“This collaboration marks a new milestone for the retirement and aged industry to fulfill the need for an integrated financial and healthcare framework, especially for the ageing population.

“In years to come, the retirement industry can become another new industry with a double-digit growth, with subsector like property and nursing to benefit, and soon there could be more structured nursing homes,” Matthew said.

Source: BERNAMA

Stakeholders discuss building a retirement industry

RETIREMENT is not just about how much you have when you stop working. It is about your next phase of life,” said Ismitz Matthew De Alwis, executive director and chief executive officer of Kenanga Investors.

“What will you do for the next 20 years after retirement?” he asked the packed ballroom at the Sustainable Retirement & Aged Care Conference (SRACC).

Organised by Kenanga in partnership with Aged Care Group (ACG), the conference, held at the Majestic Hotel in Kuala Lumpur last week, saw representatives from the government, private sector and non-governmental organisations (NGOs) coming together for a day of discussions, networking and seeking solutions.

“Retirement is not something dull. It is not about the time when you stop working, go to day care and nursing home, while waiting to die. Retirement is the best phase of your life. It’s when you enjoy. Let’s get some colour into retirement,” he said.

He explained that even in retirement there are different stages with the last stage being when you would need more care.

There are many topics that can be discussed regarding retirement – from the financial side of things to where to live, what to do, and how to manage everything.

“This is a big topic to cover. We have a lot of questions. We hope from today we can start sharing that retirement is beyond numbers. Retirement is an industry that we need to take seriously, along with the whole ecosystem that comes with it,” said De Alwis.

The one-day conference featured three panel discussions.

The first discussion saw representatives from the civil service, private sector and government agencies talking about Malaysia’s financial options for retirement and aged care to ensure lifelong sustainability.

Can Malaysians afford to retire and how will they pay for their aged care? Will it come from the government, their pension, Employees Provident Fund (EPF), insurance, Private Retirement Scheme (PRS), savings, or all of these? Is it possible to have an integrated management system for all these, so that it is easier for Malaysians to pay for services?

The panellists explored this subject and even took questions from the floor.

The second panel consisted of foreign representatives who shared their experiences in retirement and aged care in Singapore and Australia.

The third panel discussed private sectors and NGOs getting involved in the retirement and aged care ecosystem in Malaysia.

While the conference did not conjure answers for all questions, it did start a lot of conversations and provided much food for thought.

Set the ball rolling

Panellist Tan Sri Datuk Dr Abu Bakar Suleiman, president of International Medical University, said, “In the 1960s and 1970s, no business wanted to build hospitals. So, who built hospitals? The doctors. Nobody else wanted to invest. They showed that it’s a viable business. After that, others came in.

“We are now in that stage of the game.”

While there are parties who are keen to get into the industry, many seem to be adopting a wait-and-see attitude and trying to find the best business model first.

“If we don’t build, we don’t have an industry and it becomes exclusive. When there are participants in the industry, then things will come to a palatable price. That’s what is important.

“At this moment the industry is in its infancy. We need to develop the whole ecosystem,” explained Kenanga’s De Alwis.

According to him, SRACC was held to get people from the private sector, public sector and NGOs to come together to look at the industry from a macro level and to look at building an integrated ecosystem, rather than working in silos.

“That’s why this conference is called Sustainable Retirement & Aged Care Conference and not a retirement conference. We are talking about the third phase of life, the things that we need to do to make it a colourful retirement.

“This is the next thing to come. It is going to be an industry. When the time comes, there are things that need to be catered for in this industry and we need the support of all stakeholders.

“As you can see it’s a huge ecosystem that we need to work on. We talk about government policy makers, private healthcare institutions, the entrepreneurs, the financial institutions like Kenanga, and the educational and training institutions. I think this basically will make up a sustainable aged care infrastructure,” said De Alwis.

Projects moving forward

In his keynote address, Fabian Bigar, Director (NKEA Healthcare) of Pemandu (Performance Management & Delivery Unit), spoke on “Delivering Transformation for Retirement and Senior Living in Malaysia”.

He provided the background of retirement and senior living in the Pemandu NKEA (National Key Economic Area) lab.

According to him, it is estimated that the retirement industry would create about 10,000 new jobs and RM1.7 billion in terms of GNI (gross national income) in the year 2020, when Malaysia becomes an ageing society.

After the completion of the lab, Pemandu presented its findings to the Malaysian Cabinet. Apart from the Entry Point Projects, Pemandu also requested for:

  • New act for aged care;
  • Reverse mortgages;
  • Transformation of existing old folks homes;
  • Insurance coverage for long term care and mobile services;
  • Financial incentives for the industry;
  • Trustee to manage finances for the senior citizens who are in homes; and
  • New skills standards.

“We received agreement in principle for all of this, of course subject to further discussions with the various agencies. Not everybody is moving at the same speed, so we have to leverage on those who can work faster,” said Bigar.

According to him, the Private Aged Healthcare Facilities and Services Bill will be ready for tabling at Parliament by the end of the year. However, as there are many other items waiting to be tabled as well, the Bill might only see the light of day next year.

While waiting for the Bill to be tabled, Pemandu has been working on the regulations.

“We started this year, so that when the Bill comes on stream we can enforce it in a short time,” explained Bigar.

In addition, the Department of Skill and Development has come up with the National Occupational Skills Standard (training syllabus) for the training of caregivers.

The Malaysian Investment Development Authority (MIDA) has been looking at incentives for the industry to be gazetted as a promoted industry.

While the Department of Town and Country Planning has developed “Physical Planning Guidelines for the Elderly Facilities” which will serve as a guide for the planning and designing of a senior living facility.

“These four agencies are already moving. As for the others, for example, finances and insurance, we will make sure that these things are put in place next year.

“Obviously, there is a lot more to be done. I hope at this conference we will find some clues, if not answers, on how we can move this agenda forward,” he added.

Innovation

De Alwis said the takeaway from the conference is that if you are a business owner, an NGO or individuals needing helping or who have questions related to the elderly, you would now know who to contact. ACG is positioning itself as a platform for all parties to work together towards elevating the retirement industry.

CareTRUST was derived to provide an avenue for those in the financial line to help clients manage the accumulation of their money and then the decumulation after retirement when they need to pay for services and facilities.

This collaborative effort sees more than 12 unit trust companies, four insurance companies and seven PRS providers on the bandwagon so far.

With ACG as the Care Administrator, CareTRUST would also see to it that the client’s wishes are fulfilled in terms of how they want to be cared for and where they want to live, when they are no longer able to execute these decisions for themselves.

This is just one of the new products targeted at retirees. De Alwis added that the retirement industry will spur product innovation. “It is something that we will continue to search for at Kenanga, be it within our group or working with various partners. It doesn’t matter if the money goes here or there. At the end of the day, we are enlarging the pie.

“We just need people who are brave enough to join in to build the industry. It’s not difficult and it’s not just to cater to one part of it. It’s a big part of the economy. It also can be very profitable if it’s done correctly. It’s an industry by itself.

“We need to create a retirement industry, then everything will come into play. There are various programmes now like Malaysia My Second Home, but everything needs to link together. We have to look at the whole ecosystem of retirement.

“On top of that, when we have more retirement products and services, of course, the cost will come down. It becomes a commodity. But, at this moment, no one dares dabble into it. If you look at it, five years down the road is a very short time, but in 10, 15 years, this will be a booming industry.

“We are quite excited. It creates more dynamism in terms of how we treat this product-wise and services-wise,” said De Alwis.

ACG chief executive officer Carol Yip pointed out that some parties in the country are already building facilities and offering services for retirees. However, demand is still more than supply. To speed things up in time for 2020, more players need to enter the market place. This would reduce the cost, and these facilities and services would then be more affordable to the masses.

Conclusion

Speaking to reporters, De Alwis said that this year’s conference was more of an introduction to the infant industry, and next year should see a drill down to more intense topics.

“We hope to see that there is growth and development, and we will be able to share more, get more speakers and expertise coming in to provide more advice.

“Once retirement becomes an industry, Malaysians will take it more seriously and the whole ecosystem will fall into place. Our theme today is ‘A shared synergy towards an integrated ecosystem’. For an integrated ecosystem all the stakeholders have to come together in their own way. Like a jigsaw puzzle, all the pieces must fit together,” concluded De Alwis.

Main photo: Ismitz Matthew De Alwis, executive director and chief executive officer of Kenanga Investors, presenting his keynote address at the Sustainable Retirement & Aged Care Conference.

WP-Backgrounds by InoPlugs Web Design and Juwelier Schönmann