Cuepacs: Not all can work till 65

New Straits Times

21-05-2025

KUALA LUMPUR: The government should provide civil servants the option to retire at 60 if it plans to raise the mandatory retirement age to 65, said the Congress of Unions of Employees in the Public and Civil Services (Cuepacs).
Secretary-general Abdul Rahman Mohd Nordin said while raising the retirement age may offer certain benefits, it could pose mental and physical challenges for some.
He said some civil servants might face serious health issues if they were required to continue working into their later years.
"However, extending the retirement age to 65 is subjective and depends on individual and social factors.
"Some welcome the move as a chance to stay active and continue contributing, but many prefer early retirement for their health and a more balanced life.
"Many women, in fact, would prefer to retire at 55, which was the previous mandatory retirement age."
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Minister in the Prime Minister's Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said had, on Tuesday, called on the government to consider revising the mandatory retirement age from 60 to 65, as many people at that age remain healthy and were experienced.
Azalina said her suggestion was in line with the concept of "active ageing", adding that many older Malaysians remained active and energetic well into their senior years.
She said several countries, including some of Malaysia's neighbours, had implemented higher retirement age thresholds.
Rahman said flexible retirement options would help civil servants plan their future.
"For those in good health, extending the retirement age to 65 can be advantageous.
"It allows them to develop their experience and skills while continuing to contribute to their organisations.
"Longer employment also strengthens financial security and provides better preparation for retirement."
The Malaysian Employers Federation said the government must ensure that a well-structured and comprehensive strategy was in place before considering raising the retirement age.
Its president, Datuk Dr Syed Hussain Syed Husman, said: "In principle, it is a sound idea, as people today are living longer and leading healthier lives.
'We should explore ways to keep them employed, provided their skills and knowledge remain relevant and in demand.
"However, if we retain employees for longer periods, what will happen to promotion opportunities for younger staff?
"We must ensure that while we aim to retain experienced workers, business growth is also encouraged so that both goals can be met."
Syed Hussain said the employment challenges faced by young graduates could worsen if job openings were delayed by longer employee tenures.
"If people remain in their roles longer, it reduces openings for fresh graduates as vacancies are postponed.
"Therefore, another solution would be to attract more investment, allowing the economy to generate additional jobs and absorb new entrants into the workforce.
"Most vacancies arise through retirements or business expansion.
"If these areas are addressed effectively, retaining healthy and capable individuals beyond the retirement age could be a viable option."
With Malaysia expected to become an ageing nation by 2035, Syed Hussain stressed the need for flexible arrangements for older employees.
However, he cautioned against a one-size-fits-all approach.
"Only those who are healthy, fit for duty and possess skills relevant to the workforce should be considered."
He said certain roles, due to their physically demanding nature or specialised requirements, might not be suitable for older employees.
"Technological advancements are reshaping many industries, with some roles becoming obsolete or automated.
"Furthermore, some basic jobs can be handled more efficiently by artificial intelligence and other technologies."
In Malaysia, the retireent age for civil servants has been revised three times over the past two decades through amendments to the Pensions Act 1980 — raised from 55 to 56 in 2001, to 58 in 2008 and then to 60 in 2012.
In the private sector, the Minimum Retirement Age Act 2012 sets the retirement age at 60.