FEELING THE COLD AND THE PINCH IN GERMANY

Braving the cold at a Christmas fair in Cologne.

My first visit to Germany was in December 1998. Last month, I returned for a more leisurely visit. During my one week in Cologne, I had the opportunity to talk to some senior citizens about how they viewed retirement. One can learn a lot from such exchanges with seniors from other countries. Hmm.. maybe it's time we had a World Seniors Summit, just like the World Economic Forum in Davos, Switzerland, but minus all the finger-pointing and blaming.

Christmas eve dinner

Over a Christmas eve dinner at his home, I asked Dr Erhard Schelzke, 73, how he views his retirement. A professor at one of the public universities until he retired some years ago, he says, "A lot depends on how well-prepared you are, how much you managed to save during your working years."

Dr Schelzke providing some Christmas cheer on his violin.

Dr Schelzke is enjoying his semi-retirement years as a part-time entrepreneur consultant at the university. When not at work, Dr Schelzke spends his time reading and playing his violin. The latter is a passion that has been with him since he was 10. He hopes to raise enough funds to start a violin school for children.

Unlike Dr Schelzke, Manfred Luer, 70, works six days a week running his family jewelry business together with his partner, Ursula, 66. Both have accepted their impending retirement, but are not looking forward to it. "The business has been such a big part of our lives. With the global economic downturn, it's getting harder for small businesses like ours to survive. But we will carry on as long as we can."

Manfred and Marcus Luer

Then there is 83-year old Marga Linden. She is seldom seen without her trusty bicycle, which takes her wherever she needs to go in the suburbs where she lives. "My knees are starting to act up," she complains. Life has been much quieter since her husband passed away in 1975. Not one to stay home and mope, she meets with her girl friends regularly, and does grocery shopping for those less mobile than she. She takes retirement in her stride, and is determined to remain physically and financially independent.

With long-standing low birth rates and increasing life expectancy, compounded by the high rate of unemployment in recent years, Germany's pension system is under much pressure. Simply put, there just aren't enough young working adults to contribute towards the old age pension system for the burgeoning number of workers who retire.

Some reforms introduced by Chancellor Angela Merkel to give the government more time to work out solutions include raising the retirement age from 65 to 67, and extending the minimum years of work service from 40 to 45 to be eligible for pension benefits. Not everyone is happy with these reforms.

In Malaysia, similar 'reforms' have been implemented. The retirement age for civil servants has gone up from 55 to 57, and the years of service from 25 to 30 to be eligible for pension benefits.

Here in Malaysia, workers earning less than RM3000 must contribute to SOCSO (Social Security Organization). Their employers also contribute to SOCSO. Benefits include coverage for work-related injuries and medical insurance. SOCSO contribution is optional for those earning more than RM3000, but the consent of the employer is required.

Those earning above RM2500 have to pay income tax and contribute to the Employees Provident Fund (EPF). Their employers also contribute to the fund. There is currently no mandatory contribution to medical insurance. Whether this will change in the near future is anyone's guess.

Compare this with workers in Germany who pay not only income tax, but also contribute to health insurance, long-term care insurance and unemployment insurance. Workers and their employers each pay equal amounts into the old-age pension system. This works out to about 19.9% of an employee's gross earnings.

The level of pension to which people are entitled is based on what they have earned over the whole of their working life and is currently at the level of about 68% of their last drawn salary. So the more a worker contributes during his working years, the more pension benefits he enjoys in his retirement.

Click here to find out the different approaches taken by other countries to deal with the pensions crisis. There might be lessons Malaysia can learn.

USHERING IN A YEAR OF UNCERTAINTY

The Ox has started its year of reign, although many are wishing it was the bull instead reigning in the stock markets. There's the customary lighting up of firecrackers to drive away evil spirits and bad luck. Will it be a year of boom and bloom, or doom and gloom? The jury still seems to be out on this one. Whatever the verdict, it is difficult to get into the celebratory mood this year as thousands of Malaysians have lost their jobs, with the number expected to rise further after the festival.

God of Prosperity giving out red packets (ang pows) of money .

A week before the Chinese New Year (CNY), I had no problem changing old notes for new ones at the bank. And there were stacks of ang-pow packets for the taking. During the same period last year, banks had already run out of new notes and red packets.

I was in Chinatown a few days before the Lunar New Year. The usual pre-festival crowds were missing. Only a few stalls did brisk business selling CNY decorations and foodstuff.

Chinatown minus the Chinese New Year festive cheer.

Many families opted for reunion dinners at home. At the restaurant where we had our family CNY dinner, only half the tables were occupied. Many companies are not giving their staff bonuses. With less money to celebrate, it is not surprising that people are spending less on their CNY shopping. And what about ang-pows (red packets containing money)? Fewer are given out, and fewer received. From what I have heard, the amount too has shrunk drastically.

On the bright side, prices of some products and services have gone down as supply exceeds demand. It’s easier to negotiate with landlords for lower rentals, or with car dealers for hefty discounts. Increasing prices during this period would be suicidal for most businesses. Hypermarkets, food courts and budget airlines are among the few businesses that will see profits.


It is important to maintain optimism. While the economic crisis may not affect us seniors as much as it may affect our adult children and grandchildren, it is prudent for us to tighten our belts a notch or two, and avoid dipping unnecessarily into our retirement savings and pension funds.


For the Chinese during this CNY festive season that lasts till February 9, there should be no letting up in observing traditions, especially those that bring good luck and prosperity. So immerse yourself in the colour red which symbolizes good fortune. Eat food that have auspicious names, toss yee sang (raw fish salad) to increase your chances of making money, and pray that the God of Prosperity will smile on you this year!

Surround yourself with all things red and auspicious.

Tossing yee sang for prosperity in the coming year.

Here’s wishing all my blog visitors a Happy and Prosperous New Year. We certainly need it.

Me and my grandchildren, Reiya, 3, and Max, 8. We wish you "Gong Xi Fa Cai".

BRINGING UP THE KIDS IS PARENTS' ROLE

Below is Bulbir's letter which was published in The Star today. He shares his opinion on nurturing children.

Doting grandpa Bulbir with two of his grandchildren.

I LIKE much of what is said by single mother "No need to please others" (Sunday Star, Jan 25). Well said in how to bring up kids of today, Chan Suet See. I am also like you in handling children and grandchildren. I believe in being a tough master here as you say “be prepared for buckets of regrets” if they do not come out right.

Take this from me - parental involvement is a major key to success of kids at home, in school and in life. And for great bonding, we must be involved with our children and keep them away from any bad influence at an early age. Parents need to take on the responsibility of teaching children good values and ethics that should stand them good all their lives.

Quality family time at home

Some parents today say they have limited time and there is so little they can do for them. Others maintain that economic and social conditions keep them away from the young ones. Some are forced to work long hours. That is a reality.

But can we leave it like this? No. To me, whatever little time we spend with our children counts. I mean quality time. We should show that they are our priority. We can read to them, play with them, or assist them with their homework.Teachers can only find little time to work one -on -one with your children. Bear in mind that God holds parents, not teachers, ultimately responsible for the upbringing of children.


BULBIR SINGH
Seremban

OLD FOLKS SURE DO THE DARNDEST THINGS!

Time for a much needed dose of feel-good medicine. Nothing like some self-deprecating humour to do the trick. Thank you, Henry Cheong of Melbourne, for reminding us not to take old age too seriously :-)!

Ya, right, gramps! We all go through phases.

Seeing double - and double the joy!

Nothing like celebrating with a puff from your birthday cake!

I could have sworn it was up there before.

Giving new meaning to "Get Lost!"

That's the strangest 4-wheel drive I've ever seen!

Is grandma a total embarrassment or the pride of the family?

Dirty old hand!

Doesn't matter - I'm here for the free beer!

Mind those dentures!

Grandma's motorcade.

Always wear your safety helmet if nothing else!

PRESIDENT OBAMA'S CAMPAIGN PROMISES TO RETIREES

I stayed up till 4.00am local time to watch the live telecast of the inauguration of the 44th President of the United States of America. Well, the celebration's over. For President Obama, the real task of governing has begun.

How many of his campaign promises will he honour now that he is president? What compromises will he be forced to make, being the pragmatist that he is.

Here's Obama's proposed retirement agenda in brief.

Social Security

~Protect Social Security benefits for current and future beneficiaries alike.

~No to raising the retirement age.

~No to privatizing Social Security.

~Those making over $250,000 will contribute 2%-4% more to Social Security to keep it sound.

Retirement Savings

~Ensure that bankruptcy courts do not demand more sacrifice from workers than executives.

~Tell companies that they cannot issue executive bonuses while cutting worker pensions. ~Increase the amount of unpaid wages and benefits workers can claim in court.

~Limit the circumstances under which retiree benefits can be reduced.
~Require Full Disclosure of Company Pension Investments.

~Eliminate Income Taxes for Seniors Making Less Than $50,000.

~Create Automatic Workplace Pensions.

~Expand Retirement Savings Incentives for Working Families.
~Prevent Age Discrimination

Affordable Health Care

~Provide Cheaper Prescription Drugs.

~Allow seniors to import safe prescription drugs from overseas. This will prevent pharmaceutical companies from blocking cheap and safe generic drugs from the market.
~Protect and Strengthen Medicare.
~Provide Transparency to Medicare Prescription Drug Plans.

~Strengthen Long-Term Care Options.

~Train more nurses and health care workers.

Protect and Honor Seniors

~Ensure Heating Assistance: increase funding for the Low Income Home Energy Assistance Program (LIHEAP) which helps low-income citizens — many of them seniors — pay their winter heating and summer cooling bills.
~Support Senior Volunteer Efforts: engage more interested seniors into public service opportunities by expanding and improving programs like Senior Corps to connect seniors with quality volunteer opportunities.

Click here to view the retirement benefits American citizens currently enjoy. Can retirees and pensioners in Malaysia hope for similar benefits? Or are we much better off than our American counterparts? For a look at pension funds and retirement funds in Malaysia, click here.

NOT JUST A DREAMER, BUT ALSO A DOER

Today is Martin Luther King Day. It's not marked on the calendar in Malaysia or Singapore, and most folks in the region probably have never heard of this man who gave President-elect Barack Obama the courage to dream and the audacity to follow that dream all the way to the White House.

But what impacted me was how the day is always celebrated in the US - with community service. Today, 19 January 2009, which is also the eve of the inauguration of the first African-American President, who better exemplifies this spirit of service than Obama himself?

A day before he takes the oath to serve the nation and its people, Obama appealed to all Americans to honour the Reverend MLK through service to others. He followed up on his words by visiting a military hospital and talking to the wounded troops there, and then dropping by at an emergency shelter for homeless teens where he helped to paint the walls. He said there can't be any "idle hands" at a time of national hardship.

How can one not be inspired by Obama?

To quote former US President Franklin Roosevelt, "The test of our progress is not whether we add more to the abundance of those who have much; it is whether we provide enough for those who have too little."

And here's how we seniors can do our part, either as an individual or as a group.

~ For those of us with money to spare, we can donate to a deserving charity or a noble cause. Even RM10 can go a long way if many contribute.

Helping the less fortunate through World Vision.

A bag of rice goes a long way for the poorest of the poor.

~ For those of us with time to spare, we can volunteer to help out at welfare organizations or community support groups.

~ For those of us with energy to spare, we can start our own project to raise funds for charity, or create awareness for the less fortunate in society.

Volunteers busy packing bags of food and provisions for distribution.

Recent research has established a strong relationship between volunteering and health. Those who volunteer have lower mortality rates, greater functional ability and lower rates of depression later in life.

And get this: Older individuals who volunteer demonstrate greater health benefits than do younger volunteers, due in part to the fact that volunteer activities by older individuals are more likely to provide them with a purposeful social role.


So age does matter in this case.

Count me in as a volunteer. I want to enjoy better health in my old age. Don't you?