Sunday, March 26, 2023

Malaysia Considers Extending The Retirement Age To 65 Year Old

NewsMalaysia Considers Extending The Retirement Age To 65 Year Old

Last year, the World Bank has recommended Malaysia to gradually increase the retirement age to 65 year-old because of our rapid ageing population.

According to The Star, the Public Service Department director-general Tan Sri Mohd Khairul Adib Abd Rahman said the Public Service Department will consider the proposal given that many individuals are still productive at the current mandatory retirement age of 60.

“The World Bank has proposed that Malaysia increase the retirement age of its public-sector workforce in stages since we now have a better life expectancy.”

Source: The Straits Times

“We have to look at this thoroughly because there are more than half a million new job seekers entering the labour market every year.”

“But if the economy continues to expand leading to the creation of more job opportunities, we could consider this,” he said to the media after a session with human resources managers in the state civil service at Wisma Negri on Thursday (25 November).

Source: Today Online

The retirement age for government employees was being gradually increased from 55 in 2001 to 60 in 2012 and it may soon be adjusted to 65.

However, Mohd Khairul said the government will have to look at several aspects before updating the mandatory retirement age.

“Although the World bank has recommended that we do so, we have to consider several factors and look at it holistically before reviewing it.”

“I agree that there are many who can still serve beyond the age of 60 but we also have to balance this with those entering the job market and labour market conditions, among others.” he said.

Do you see yourself working until 65 year-old? Share your thoughts!

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