News Retiring Early

What Malaysians are saying to increasing retirement age from 60 to 65

Are Malaysians ok to work till 65?

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(Featured Image Credit from Asian Development Bank and P interest)

Why would the Government want us to keep on working?
First of all, Malaysians are living longer so many experts are justifying that we should be working longer too. With higher standards of living and health benefits and infrastructure, the “Nationally Announced” life expectancy of Malaysians are an average 74.7 years in 2016 compared to 72.2 years in 2000.  (Sources: MalayMailOnline)

Many critics have warned that these estimates can be misleading due to the inconsistencies between age brackets, gender, income levels and different ethnicity.

Secondly, increasing the retirement age could help the country save some big bucks. We all know that the government is struggling to balance their massive checkbook right now. If they were to increase the retirement age, not only would more workers pay into EPF and SOCSO for longer, but the country won’t have to spend as much money caring for retired seniors. (Read: How to retire early)

Below is the population projections for Malaysia. (Department of Statistics Malaysia)

dosm

A recent poll conducted by The Star Online found that 66% of the 3,780 participants voted “no” to increasing the retirement age.

It was also found that the majority of poll participants (1,556) chose 55 as the “ideal retirement age”, and a  mere 7% voted for 70.

It was found that the general sentiment of those who voted against increasing the retirement age was to give the younger generation an opportunity to take over the workforce.

Here are what some Malaysians have to say about this:
  1.  “After the age of 55, we need to spend time for ourselves. We should allow the younger generation to take over with ideas which are more innovative and creative.”
  2. “We notice that (work) performance decreases with increasing age. Some get paid for doing less work. Just give the younger generation a chance instead.”
  3. “It is to provide even more new jobs for the young ones. It is also to stop burdening senior citizens to comply with the latest technology.”

Others cited medical reasons for voting against the increase of retirement age.

  1. ” Senior citizens should be at the age of enjoying life and not going to work as it would affect their health.

On Sunday, Women, Family and Community Development Minister Datuk Seri Rohani Abdul Karim clarified that the Government was not planning to increase the mandatory retirement age from 60 to 65.

Rohani refuted media reports saying that the Government was planning to raise the retirement age.

“Extensive research needs to be carried out because the mandatory retirement age was only just increased to 60 in July 2013,” she said.

Do write to us. We would love to hear from you on your thoughts.

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