How Malaysia can raise its retirement age from 60 to 65: Experts explain the math and more
KUALA LUMPUR, Oct 15 — Should Malaysia push its retirement age up from 60 to 65, and if yes, how can it be done?Cu...
Malaysia is considering raising its retirement age from 60 to 65, according to global pension expert William Price. Currently, both private sector employees and civil servants have a mandatory retirement age of 60. The expert argues that Malaysia should gradually increase its retirement age to at least 65, as Malaysians are living longer.
Price suggests that countries usually implement this change gradually, rather than abruptly, to avoid psychological and practical difficulties. He explained that the increase could be implemented by adding three months to the retirement age each year until it reaches 65. For instance, a 40-year-old would have 20 years to prepare for working five more years until retirement.
Those closer to the initial retirement age of 60 would not experience a sudden change in their work requirements. The expert noted that this gradual method is less politically divisive and allows the labour market to adjust more smoothly. Price also proposed linking the retirement age to life expectancy figures, so if life expectancy remains the same, the retirement age does not change.
He suggested that workers could access their retirement funds at an earlier age if they had saved more in their EPF, providing an incentive for people to save more.
Written by urgent.news from Malay Mail's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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