Takaful, zakat and waqf instruments in ensuring holistic senior citizens program development in Malaysia

• Main Authors: Hassan, Rusni, Yusoff, Adnan, Ahmad Asnawi, Asral Widad, Adnan, Ieman Sofiyya
• Format: Conference or Workshop Item
• Language: English; English; English
• Published: 2020
• Subjects: BPH531 Zakat; BPH741 Waqf; HG3368 Islamic Banking and Finance; HG8719 Islamic Insurance Takaful
• Online Access: http://irep.iium.edu.my/86718/1/86718_Takaful%2C%20zakat%20and%20waqf%20instruments.pdf; http://irep.iium.edu.my/86718/2/86718_Takaful%2C%20zakat%20and%20waqf%20instruments_certificate.pdf; http://irep.iium.edu.my/86718/3/86718_Takaful%2C%20zakat%20and%20waqf%20instruments_bestaward.pdf; http://irep.iium.edu.my/86718/; https://www.iium.edu.my/institute/iiibf/online-conference-isfpcps-september-2020
• Institution: Universiti Islam Antarabangsa Malaysia

Malaysia will face the phenomenon of aging in 2040. It is estimated that individuals aged 65 years and above will represent 14.5% of the total population of the society as compare to the young population which will be at 18.6%. These predictions are made based on statistics that have been researched taking into consideration of the consistent increase and decrease of the number of the population in Malaysia. In 2020 alone, the elderly in Malaysia is expected to reach 3.21 million people. The current of modernization greatly changes the structure of the Malaysian family whereby children are not be able to take care of their old parents due to high demand of work and life. The work culture in Malaysia demands that employees to put priority on works and thus less focus on their family and elderly parents. Not only that, the work opportunities that are mainly based in the cities and central areas require the young to travel and migrate far from their parent’s residence, leaving the elderly parents unattended. This phenomenon requires urgent attention and consideration from the government and relevant bodies to plan for the future of the elderly Malaysian. Future life planning is considered to be fundamental to ensure well-being of the life of the elderly. The elderly need to be provided with sufficient financial support for comfortable home, food, medical treatment and other physical and emotional needs. The question that arise is that are they prepared for their life in old age? Do they have insurance or takaful protection to cover their life in golden age? Do the government provide sufficient protection for the elderly in Malaysia to live a decent and comfortable life when they turn 70 years of age and the children are not around to take care of them? This paper aims to appraise the role of Takaful, Waqf and Zakat in helping and supporting the elderly or senior citizens in Malaysia. The paper will also propose how Takaful, Waqf and Zakat can be used as instruments and tools to help the elderly community so that they can live their life without worries. In this context, Takaful, Waqf and Zakat are among the tools/instruments that have great potential to be explored in providing financial assistance and protection to the elderly community. Takaful can provide a systematic financial assistance and protection for the elderly; whilst Zakat and Waqf may play the role to provide funding for such Takaful products. This paper will propose how these three instruments can be integrated for the utmost protection for the policy holder and their beneficiaries when they reach the golden age.