Rwanda’s EjoHeza Long-Term Savings Scheme,23 launched in 2018, is transforming retirement security by expanding financial inclusion for informal and low-income workers. Designed as a voluntary savings platform, EjoHeza (which means “a bright tomorrow” in Kinyarwanda), offers micro- pensions that integrate government incentives and digital accessibility to build a more resilient public retirement system. This micro-pension approach addresses the unique challenges faced by workers without access to traditional pension schemes: –Low-income savers receive up to a 100% match from the government on contributions, encouraging participation and boosting retirement savings. –Accessible through mobile platforms, EjoHeza simplifies registration and savings processes via digital enrolment and contributions, ensuring wide reach, especially in rural areas. –The scheme is open to all Rwandan citizens, including informal workers and children, promoting an inclusive culture of savings across generations. –Participants can make small, irregular contributions, reflecting the earning patterns of informal and low-income workers. This flexibility ensures that individuals with inconsistent incomes can still save for retirement. With millions of participants already enrolled, EjoHeza has significantly increased financial inclusion and strengthened Rwanda’s social safety net. It is important to note that the level of savings is still low, suggesting the system of incentives and benefits may require continued refinement. However, its innovative approach to using technology, incentives and inclusivity provides a model for other nations seeking to build resilient public retirement systems. Malaysia’s Employees Provident Fund (EPF) exemplifies the opportunities and challenges of reforming retirement systems in an emerging economy. Established as a mandatory savings scheme for formal workers, the EPF has grown to cover more than 16 million members. As Malaysia’s workforce evolves and its population ages, the EPF continues to refine its approach. –The EPF allows partial withdrawals for housing, education and medical expenses, offering workers a degree of financial flexibility while retaining long-term savings for retirement. During the COVID-19 pandemic, Malaysia introduced temporary withdrawal schemes to help workers navigate economic hardship, though this raised concerns about retirement adequacy. –To strengthen retirement savings while enabling flexibility, the EPF introduced a three-account structure in 2024, allocating 75% of savings for retirement, 15% for conditional withdrawals (e.g. housing or education) and 10% for a flexible account that members can access any time for emergencies. Early data suggests that most members are prioritizing retirement savings, with 70% opting not to use the flexible account. –Recognizing the need to expand coverage, the EPF launched initiatives such as i-Saraan, which encourages voluntary contributions from informal workers through government-matching incentives. As of 2024, the government provides a 20% match (up to RM500 [approximately $110] annually), leading to a 53% increase in participation, from 380,000 members in 2023 to 580,000 in 2024. Malaysia is exploring reforms to improve financial literacy, expand mandatory coverage to informal and migrant workers and enhance portability for workers transitioning between formal and informal sectors. These efforts signal the government’s commitment to evolving the system into a more inclusive and sustainable model. With the pursuit of legislative changes and coverage extension roadmap in place, Malaysia is poised to close the 40% coverage gaps of the workforce in accessing a formal retirement scheme. Notwithstanding, coverage of the informal sector – which accounts for a significant portion of the country’s workforce – remains a challenge. Malaysia’s retirement system highlights the challenges of balancing flexibility with sustainability and inclusion. Its reforms offer valuable insights for countries seeking to modernize retirement systems in response to shifting demographic and economic realities.Rwanda’s EjoHeza Scheme for the informal workforce Malaysia’s approach to retirement system reform Future-Proofing the Longevity Economy: Innovations and Key Trends 1212

Future Proofing the Longevity Economy 2025