Raising retirement age could boost financial preparedness among older Malaysians
KUALA LUMPUR: Retiring at 60 may leave many Malaysians financially vulnerable as the longer lifespans and rising cost of living strain most people's savings, an economist warns.
Universiti Putra Malaysia School of Business and Economics lecturer Associate Professor Dr Lee Chin said extending the retirement age to 65 could improve financial preparedness among older Malaysians, particularly civil servants.
"Allowing civil servants to remain in the workforce longer enables them to earn a stable income, contribute to their retirement savings and delay the drawdown of their pension or Employee Provident Fund savings," she told the New Straits Times.
She added that the current cost of living and increased life expectancy made early retirement increasingly unsustainable, especially for those who had not accumulated enough savings to last 20 to 30 years post-retirement.
However, Lee said, any decision to raise the retirement age must be accompanied by efforts to retrain older workers and ensure workplace policies supported intergenerational balance.
Her remarks followed renewed discussions on whether the government should revise the statutory retirement age, currently set at 60, in light of demographic and economic changes.
On Tuesday, Minister in the Prime Minister's Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said suggested that the government should consider raising the retirement age to 65, citing the capability and experience of older workers.
Malaysian Society of Geriatric Medicine president Professor Tan Maw Pin said retiring at 60 no longer reflected the realities of a population that was living longer but remained financially unprepared for extended lifespans.
"With a rapidly ageing population and a shrinking workforce, we no longer have the luxury of retiring early.
"Many who retire at 60 risk running out of funds midway through retirement, which could make their final years extremely difficult," she said.
Tan said older adults without sufficient financial support might end up relying entirely on their adult children, placing additional pressure on younger families.
Beyond financial concerns, she said continued employment also provided mental stimulation, purpose, and social engagement — all important elements of healthy ageing.
"Work brings routine and keeps the mind engaged. Stopping work too early can lead to prolonged inactivity, which increases the risk of cognitive decline and conditions such as dementia," she said.
Tan added that keeping the brain active helped strengthen neural connections and could prevent brain shrinkage.
"Many people rely on their work colleagues for social interaction and once retired, the risk of social isolation becomes very real.
"Social isolation is as significant a risk factor for poor health as cigarette smoking."
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Malaysiakini
5 hours ago
- Malaysiakini
MCMC's phone data grab is not harmless
COMMENT | In 2018 and again in 2022, Malaysians voted for reform, demanding greater transparency, democratic rights, and a government that listens. That is why the public backlash to recent revelations about the MCMC mobile data request has been swift and entirely justified. According to local and international media reports, such as The Edge and South China Morning Post, MCMC issued directives to five major telcos requesting mobile phone metadata for the first quarter of 2025. The fields listed include anonymised user IDs (MSISDN), precise date and time stamps, base station identifiers, GPS coordinates, data type (calls or internet), service type (2G - 5G) and mobile country code. On paper, names or identity card (IC) numbers were excluded, but in practice, metadata is never truly anonymous.
New Straits Times
6 hours ago
- New Straits Times
NST Leader: Healthcare burden
Few wage earners, especially Gen Z and millennials, seem concerned about saving for retirement. They view a nest egg as a strange concept, believing it's the the Employees Provident Fund's (EPF) responsibility. Their main concern is current spending, not on big purchases but on daily essentials — utilities, Internet data, rent, food, clothes, transportation and family support. Whatever little left of their monthly salaries goes towards leisurely pursuits. Even with an inflationary economy, these expenditures have bumped Malaysian consumer annual spending by five per cent, reaching RM904.6 billion, according to one study. This heavy spending has driven consumption growth back to pre-Covid-19 levels, supported by a rebounding economy that mirrors previous consumption patterns. Apparently, this RM904.6 billion in spending is still insufficient, especially for significant expenses that monthly salaries can barely cover. This has led to calls for the EPF to expand Account 2 for medical insurance, in addition to existing withdrawals for education, housing and healthcare. Are Malaysians burdened by medical insurance costs? Premiums can range from RM100 to more than RM2,500 monthly, depending on age, health condition, coverage and policy terms. Medical inflation in Malaysia is significant, at a high rate of 12.6 per cent. Consequently, falling ill without insurance is difficult, but hospitalisation — unless it's a government–subsidised facility — is almost unaffordable. Many Malay-sians, preferring smoother and faster admittance, opt for expensive private hospitals even though diagnosis and treatment quality are comparable to public facilities. Given the rising medical and living costs, the demand to widen Account 2 withdrawals is understandable. If approved, this expansion could significantly improve medical insurance coverage and take a big weight off the national healthcare system but it would also inevitably deplete EPF savings, particularly if funds are spent on non-essential or poorly chosen insurance plans, a risk further aggravated by aggressive marketing from health insurance companies. Quantifying the EPF's potential allocation for medical insurance withdrawals is challenging, but it would likely be substantial given that nearly everyone might apply. While previous figures show personal medical insurance coverage among Malaysians ranging from 22 to 45 per cent, a 2024 survey reported that 42 per cent have no coverage at all. If approved, the EPF must set clear guidelines on eligible insurance types and treatments. At the same time, contributors need to understand the long-term trade-offs of prematurely depleting their retirement funds. Ultimately, the quickest way to ensure coverage is to view medical insurance much like rent: costly but necessary. Perhaps Malaysians could redirect some funds from their monthly budget or "unnecessary" spending. Such choices would be difficult. Still, EPF contributors will likely argue that present survival is more relevant than worrying about the future. This perspective stems from an emerging philosophy of "retired but still working", a reality already taking hold.
The Sun
7 hours ago
- The Sun
Bernama Chairman Wong Chun Wai named National Journalism Laureate
KUALA LUMPUR: Malaysian National News Agency (Bernama) Chairman Datuk Seri Wong Chun Wai was named the National Journalism Laureate at the Malaysian Press Institute (MPI)-Petronas Journalism Awards ceremony held here tonight. Wong, 64, brings over four decades of journalistic experience, having begun his career as a junior reporter at The Star in Penang in 1984. He then climbed the ladder to serve in various positions at its headquarters in Petaling Jaya. Wong is the 14th recipient of the prestigious award, joining the ranks of past luminaries, including the first recipient, the late Tan Sri Abdul Samad Ismail of Utusan Melayu (1988), the late Tan Sri Lee Siew Yee of the New Straits Times (1992), and Datuk Ishak Muhammad or Pak Sako (1995). Other notable past recipients include Tan Sri Johan Jaaffar, Datuk Kadir Jasin, Adibah Amin, the late Datuk Ahmad Rejal Arbee, the late Tan Sri Zainuddin Maidin and Datuk CC Liew. Wong said he felt 'small and humbled' to be among these luminaries. The award was presented by Higher Education Minister Datuk Seri Dr Zambry Abdul Kadir. Apart from journalism, Wong has also held corporate leadership roles, serving as group chief editor, managing director, and chief executive officer of Star Media Group (SMG). In 2023, he was appointed Bernama Chairman. He had earlier served as a member of its Board of Governors (2004–2010) and as a member of its Supervisory Council (2010–2014). He continues to write analysis pieces for Bernama. Wong remains a columnist for The Sunday Star, where his popular 'On The Beat' column has run since 1997, despite no longer being with SMG. Over the years, Wong has delivered numerous exclusives, including interviews with the late physicist Stephen Hawking and former US President Bill Clinton. In 2003, he won the MPI Best Feature Award for his investigative piece on Malaysians undergoing terrorist training in Afghanistan. He was also the first Malaysian elected into the Paris-based World Editors Forum and served as Chairman of the Asia News Network with over 21 media affiliates. 'This is an honour for me and certainly the pinnacle of my journalism journey,' he said. He advised journalists to go beyond standard news writing by dabbling in news analysis and commentaries. Wong is also the author of 'Penang's History, My Story', published in 2014 by The Star, and translated into Bahasa Malaysia by Universiti Sains Malaysia. He has served as an adjunct professor at Universiti Kebangsaan Malaysia, his alma mater. 'My advice to fellow journalists is never to stop writing. 'I wish to commend my fellow veterans like Tan Sri Johan Jaaffar, Datuk Seri Azman Ujang, Datuk Yong Soo Heong, Datuk Kadir Jasin and Datuk Kuik Cheng Kang who still write, whether regularly or occasionally,' he said. 'Old journalists should never fade away, but continue writing,' he added. The veteran journalist has also embraced digital platforms such as Instagram, X (formerly Twitter) and YouTube to share his views. Wong said he strongly advocates for the engagement of professionally trained journalists, emphasising that 'we have undergone years of training, and are better equipped to understand legal boundaries and the sensitivities of Malaysia's multi-racial society.' 'More importantly, the established media is accurate and we take responsibility for what we publish,' he said. Wong dedicated the award to all journalists, particularly veterans and seniors, for their tireless service to the profession.
