
Raising the retirement age will benefit younger generation, too
RECENTLY, Minister in the Prime Minister's Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said proposed that the government raise the retirement age to 65.
Is this the right response to Malaysia's ageing population?
Globally, the average retirement age was around 65 in 2020, with many countries already pushing beyond this.
Australia has set its retirement age at 67 and Canada and Brazil at 65, with Singapore gradually increasing its re-employment age from 65 to 70.
Malaysia last revised its mandatory retirement age to 60. In 2015, the Congress of Unions of Employees in the Public and Civil Services proposed an increase to 62 for civil servants.
A good example is Prime Minister Datuk Seri Anwar Ibrahim, who continues to lead the country at the age of 78.
On the other side of the world, Warren Buffett, at the age of 94, remains the chairman of Berkshire Hathaway, one of the world's largest investment firms.
Employment trends in Malaysia show that when older workers are engaged, youth employment also rises.
The same trend has been observed in many Organisation for Economic Cooperation and Development countries such as the United Kingdom, Finland, Sweden and Japan. Older and younger workers bring different strengths.
While older workers offer experience, maturity and institutional knowledge, younger workers bring innovation and adaptability to new technology. Rather than competing, these two generations can complement each other.
Together, they create a well-managed, inclusive workforce that benefits the economy.
Extending the retirement age should not be seen as a barrier to youth employment or promotion. It's a mistake to believe that older workers will block their career progression.
The reality is that the number of older adults is increasing and they will soon outnumber youths.
We need this group to remain economically active. Our workforce simply isn't large enough to rely on young people alone. Without the older adults, we risk facing a severe shortage of labour in critical sectors.
The retirement policies we decide on today will directly affect the same young Malaysians once they are in their 50s and 60s. If we don't act now, they too may face a financially insecure old age.
Also, can most Malaysians afford to retire at 60?
According to Khazanah Research Institute and Employees Provident Fund (EPF) data, only 36 per cent of EPF members meet the basic savings threshold of RM240,000 by age 55. This amount would allow only moderate monthly expenses for around 15 years.
But what happens after that? Malaysia's life expectancy stands at 78.2 years for men and 80.9 for women. That means, on average, Malaysians need savings that can last 18 to 20 years after retirement.
Without sufficient retirement savings, older adults face financial insecurity. Stretching the retirement age, with the right support in place, will allow older people to remain financially independent.
Raising the retirement age isn't about forcing everyone to work longer. It's about helping those who can and want to remain active, financially independent, and socially engaged. It should be based on individual capacity and willingness.
Working longer is not a punishment. It is the key to a secure retirement and continued social engagement. We must begin viewing older adults not as dependents, but as a valuable asset to the nation.
Stretching the retirement age is not simply a policy choice: it's a necessary conversation about how we value older people in society.
It is time we embraced a more inclusive and forward-thinking approach to ageing and employment that recognises the reality of our demographic transition and empowers Malaysians of all ages.
To the younger generation, this policy is not a threat to your place in the workforce. One day, you, too, will reach that phase and hopefully still be healthy, capable and wanting to contribute.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


The Sun
an hour ago
- The Sun
PKR's leave to appeal bid in Zuraida's bond payment case set for hearing on June 24
PUTRAJAYA: The Federal Court will hear on June 24 an application by Parti Keadilan Rakyat (PKR) to seek leave to appeal against a Court of Appeal's decision which reduced the bond payment to be made by the party's former vice-president, Datuk Zuraida Kamaruddin, in a breach of party bond case. PKR's lawyer, Navpreet Singh, when contacted, told Bernama that the hearing will proceed via online proceedings. 'A final case management was held before the Federal Court deputy registrar Husna Dzulkifly today, he said, adding that all parties have updated the court pertaining to compliance with pre-hearing directives relating to their submissions. The case revolves around a civil suit filed by former PKR secretary-general Datuk Saifuddin Nasution Ismail, on behalf of the party, claiming that Zuraida, who was then the Ampang Member of Parliament, had breached the bond she had signed. The terms of the bond, among others, required Zuraida to pay PKR RM10 million within seven days of winning an election on the PKR ticket, should she resign from the party, join another political party, or become an independent representative. In June 2023, the High Court ruled in favour of the party and ordered Zuraida to pay the RM10 million, with the court finding the bond to be valid and enforceable. However, in December last year, the Court of Appeal agreed with the High Court that there was a breach of bond but reduced the bond amount to RM100,000, citing that the RM10 million is not a reasonable amount of compensation. This prompted PKR to file a leave to appeal. In her defence, Zuraida contended that she was forced to sign the bond with the party to be able to stand for election as a candidate in the 14th General Election (GE14) in 2018. The Federal Court will now decide whether PKR can proceed with its appeal against the Court of Appeal's decision. In civil cases, litigants must obtain leave before they can proceed with their appeals in the Federal Court.


The Sun
an hour ago
- The Sun
Federal Court to hear PKR's Zuraida bond appeal June 24
PUTRAJAYA: The Federal Court will hear on June 24 an application by Parti Keadilan Rakyat (PKR) to seek leave to appeal against a Court of Appeal's decision which reduced the bond payment to be made by the party's former vice-president, Datuk Zuraida Kamaruddin, in a breach of party bond case. PKR's lawyer, Navpreet Singh, when contacted, told Bernama that the hearing will proceed via online proceedings. 'A final case management was held before the Federal Court deputy registrar Husna Dzulkifly today, he said, adding that all parties have updated the court pertaining to compliance with pre-hearing directives relating to their submissions. The case revolves around a civil suit filed by former PKR secretary-general Datuk Saifuddin Nasution Ismail, on behalf of the party, claiming that Zuraida, who was then the Ampang Member of Parliament, had breached the bond she had signed. The terms of the bond, among others, required Zuraida to pay PKR RM10 million within seven days of winning an election on the PKR ticket, should she resign from the party, join another political party, or become an independent representative. In June 2023, the High Court ruled in favour of the party and ordered Zuraida to pay the RM10 million, with the court finding the bond to be valid and enforceable. However, in December last year, the Court of Appeal agreed with the High Court that there was a breach of bond but reduced the bond amount to RM100,000, citing that the RM10 million is not a reasonable amount of compensation. This prompted PKR to file a leave to appeal. In her defence, Zuraida contended that she was forced to sign the bond with the party to be able to stand for election as a candidate in the 14th General Election (GE14) in 2018. The Federal Court will now decide whether PKR can proceed with its appeal against the Court of Appeal's decision. In civil cases, litigants must obtain leave before they can proceed with their appeals in the Federal Court.


Free Malaysia Today
an hour ago
- Free Malaysia Today
EPF clarifies it bought 0.07% in 99 Speed Mart, and not 5%
The EPF now has a 5.02% stake in 99 Speed Mart, making it a substantial shareholder. (99 Speedmart pic) PETALING JAYA : The Employees Provident Fund (EPF) clarified it only bought a 0.07% stake in 99 Speed Mart Retail Holdings Bhd in its latest acquisition last week. In a rather embarrassing development, EPF issued an 'amended announcement' in a filing with Bursa Malaysia today stating it bought six million shares in the minimart chain operator on June 4. In its bourse filing yesterday, the provident fund announced it acquired 421.79 million shares, or a 5.02% stake, on June 4. Today's filing implies that EPF had previously accumulated a total of 4.95% equity interest in the country's largest operator of grocery stores. The acquisitions were made through Citigroup Nominees (Tempatan) Sdn Bhd. The latest purchase of 0.07% upped its stake to 5.02%, beyond the 5% threshold, thus making EPF a substantial shareholder. 99 Speed Mart's single largest shareholder is its founder and CEO Lee Thiam Wah, who controls 79.68% equity interest in the company. The group was granted a waiver from the Securities Commission Malaysia from having to meet the minimum 25% public spread requirement for its listing exercise. 99 Speed Mart ended the day up 9 sen or 4.3% at RM2.19, valuing it at RM18.4 billion. Its shares have dropped 11% year to date. Despite that, the stock has jumped almost 33% since the company was listed last September at an IPO price of RM1.65. The listing was Malaysia's largest in seven years and catapulted the wheelchair-bound Lee to billionaire status. Forbes ranks him at No 8 in its Malaysia's 50 Richest list, with a net worth of US$4.1 billion (RM17.37 billion). Lee, 61, who contracted polio as an infant, started his entrepreneurial journey by selling snacks by the roadside as a teenager. 99 Speed Mart kicked off its first quarter ended March 31 (Q1 FY2025) with a robust 7.5% rise in net profit to RM143.18 million despite rising uncertainty in the Malaysian economy. Its revenue grew at a similar pace, rising 7.7% to RM2.61 billion from RM2.43 billion in Q1 FY2024, driven by stronger retail sales and network expansion.