In a statement, PSM chairman Dr Jeyakumar Devaraj said such a scheme would help 1.8 million senior citizens lead a “dignified” life as well as reduce the financial burden on their children.

He noted that many contract civil servants were not entitled to receive a pension.

According to Jeyakumar, the government needed to allocate only RM11 billion for such a scheme, which was 2.8% of the total national budget of RM390 billion.

He also cited deputy finance minister Ahmad Maslan, who was reported to have said that the government could save RM17 billion if fuel subsidies to the T20 high income group were removed.

Jeyakumar said a pension scheme should be expedited to prevent old age poverty as the country is expected to have seven million senior citizens in 2040, which will make up 20% of the population.

It is also estimated that 2.3 million or 56% of senior citizens are currently not covered by government or private pension and insurance schemes.

“They require some form of monthly income assistance.”

He added that the problem is worsened by the fact that half of EPF members under 55 have savings below RM10,000, a far cry from the basic retirement savings of RM240,000 as recommended by the retirement fund.

“Therefore, the need for a senior citizens pension scheme is urgent.”