Providing Provision and Protection to Ageing Population via Cash Waqf Takaful Model in Malaysia

According to reports, Malaysia is becoming an ageing nation faster than the global average. The country transitioned to an ageing society in 2020 (with 7% of its population aged 65 and over) and is projected to become an aged society in 2044 (14% aged 65 and over), and a super-aged society in 2056 (20% aged 65 and over). To support the well-being of people over 65, funding typically comes from society, savings, and insurance. However, many seniors above 65 face financial challenges. Insurance/takaful offerings are often limited for this age group, highlighting the need for new and sustainable takaful models that cater to their needs. This study aims to propose a cash waqf model that provides support and protection for the ageing population. The model not only focuses on their worldly needs but also offers an opportunity for ongoing rewards through sadaqah jariya (continuous charity) in the afterlife. Grounded on Shariah principles, this takaful approach aims for lasting sustainability rather than a one-time event. Through qualitative research, we explore challenges and opportunities for implementing this model in Malaysia. The results are expected to offer an innovative and lasting solution for caring for Malaysia’s ageing population through takaful, benefiting participants during their senior years and beyond (sadaqah jariya).