Which self-employed groups are most at risk of old-age poverty?

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Vulnerable Self-Employed Groups Face Heightened Risk of Old-Age Poverty

Vulnerable self-employed individuals, particularly women, young people, and those with lower skills, are at a significant risk of old-age poverty due to difficulties in preparing for retirement. This precarious situation was further exposed by the Covid-19 pandemic, which disproportionately affected sectors where these workers are concentrated.
Concentration in Hard-Hit Sectors

The self-employed individuals most at risk are heavily represented in sectors such as wholesale and retail trade, and accommodation and food services. These industries experienced severe disruptions during the Covid-19 pandemic due to restrictions on mobility and physical contact, leading to job losses that may not be easily recovered.
Challenges with Existing Pension Systems

Existing pension systems, such as Malaysia's Employees Provident Fund (EPF) with its defined contribution scheme, may present biases that disadvantage these vulnerable groups. This can make it more challenging for women, young people, and lower-skilled self-employed workers to adequately save and prepare for their retirement years.
Impact on Economic Integration and Social Protection

The pandemic's impact on the self-employed highlights the urgent need to enhance social protection coverage. Failure to address these vulnerabilities could reverse progress made in integrating women into the economy and ensuring a basic standard of living for all in their old age.

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Which self-employed groups are most at risk of old-age poverty?

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