KUALA LUMPUR: Most employees in Malaysia expect to retire only between the ages of 60 and 65 when compared with their counterparts in Singapore and Hong Kong, according to a recent report.
Another factor why Malaysians may have to work past the current retirement age of 60 is that they could have planned far less for retirement and might find it difficult to be able to retire with a comfortable pension.
The Randstad Workmonitor first quarter 2015 survey released on Thursday said more than seven in 10 (or 76%) of employees in Malaysia believed they would have to work longer than the current retirement age in Malaysia.
The findings of the survey showed the percentage was higher than that in Singapore (59%) and Hong Kong (62%).
Director of Randstad Malaysia, Ryan Carroll said while the findings highlight that people are growing older and working longer, this was beneficial to organisations in the long run as Malaysia is one of the country facing brain drain challenge.
“The war on talent has been a constant topic of discussion and with employees being open to working beyond their retirement age; this could support Malaysian organisations with their increasing human capital challenges.
“With that said, it is important that employers provide this valued workforce with the relevant training and tools that will enable their employees to perform and be productive in their job, especially now with the constant advancements in technology,” said Carroll.
The report issued by Randstad, which is one of the world’s largest recruitment & HR services providers, also highlighted the issue of savings for retirement.
Only one in 10 employees surveyed is willing to save 40% of their income for their pension, with the balance looking to set aside 20% or less.
This demonstrated that Malaysian employees plan far less for retirement and may find it difficult to be able to retire with a comfortable pension.
“Although the government has made mandatory EPF contributions for both employers and employees, in order to achieve a financially secure retirement, employees should consider their own investment options to grow their savings bucket.
“Our research found that 75% of employees think saving for a pension is their own responsibility, not their employer’s which is good to know given that 63% of employees think their employers have active policies in place to attract and retain people aged 55 and above.
“Ultimately, organisations will benefit from retaining the mature workforce’s knowledge and capabilities as they look to increase productivity, lower turnover rates, and improve their organisation’s bottom line,” Carroll said.
Other findings of the Randstad Workmonitor survey also found that 68% of employees think it is harder for older workers (above 55) to acquire new skills.
Also 85% of the surveyed employees believe that their acquired skills and competences will last them their entire career.
The report found that 87% of employees think that employability is their own responsibility, not their employer’s.
The Randstad Workmonitor was launched in the Netherlands in 2003 and now covers 33 countries around the world, encompassing Asia Pacific, Europe and the Americas.
The report is published four times a year, making both local and global trends in mobility regularly visible over time.
The quantitative study is conducted via an online questionnaire among a population aged 18-65, working a minimum of 24 hours a week in a paid job (not self-employed).
The minimal sample size is 400 interviews per country, using Survey Sampling International. Randstad’s Q1 Workmontitor survey was conducted between Jan 21 and Feb 5, 2015 and sampled over 400 respondents in Malaysia.