Justifications against raising retirement age

I APPRECIATE the author’s insights in “Old is Gold” (Starbiz, March 7) regarding the potential benefits of raising the retirement age. However, I would like to present some alternative viewpoints on this important topic.

The discussion around retirement age is often influenced by a mix of speculation and the perspectives of a few rather than a pressing need. It’s worth noting that Malaysia has a vibrant and youthful population, unlike developed nations such as Singapore and certain Western countries where demographic shifts necessitate changes to the retirement age.

In Malaysia, the decision to raise the retirement age may not align with our current workforce dynamics.

We are fortunate to have a healthy and knowledgeable younger workforce poised to contribute meaningfully, and our nation does not currently face a worker shortage. The ideas for extending the retirement age frequently stem from concerns about insufficient retirement savings among some employees rather than demographic pressures.

Recent government initiatives, such as the implementation of the Public Service Remuneration System (SSPA) in October 2024, which has increased civil servants’ basic salaries by up to 15%, demonstrate a commitment by the government to improving workers’ financial situations.

Furthermore, on Feb 1, 2025, a significant increase in the minimum monthly wage to RM1,700 benefited around 4.37 million Malaysian workers. Reports indicate that 41% of formal workers now meet the RM240,000 minimum savings target (The Star, March 1, 2026).

Additionally, nearly 6,000 employers are engaging with the Progressive Wage Policy (PWP) up till November 2025 (The Star, Dec 4, 2025). This government initiative aims to enhance income growth and tackle wage stagnation, particularly for low- and middle-income earners.

If we focus on the effectiveness of these initiatives, we will see improved worker livelihoods and enhanced retirement savings, potentially reducing the need to raise the retirement age.

It is also important to consider how increasing the retirement age could affect employment opportunities for recent graduates. We must seek solutions that do not inadvertently create new challenges.

Retaining older workers for extended periods could lead to a workforce that might struggle with adapting to rapidly evolving technologies, new health-related challenges, and integrating into contemporary work cultures, which might impact organisational performance.

With the increasing use of AI and digitalisation, the value of experience may shift, allowing both seasoned and younger workers to leverage technology to enhance productivity and profitability. The implementation of AI aims to streamline operations and reduce costs, making younger workers a potentially more cost-effective option while maintaining similar levels of productivity.

While raising the retirement age may seem beneficial at first glance, we must recognise that it may primarily advantage a limited group rather than the majority. The financial implications for both the government and businesses could be considerable as they would need to sustain a larger workforce for a longer duration without guaranteed improvements in services or overall productivity.

Malaysia has already made significant adjustments to the retirement age in recent decades –from 55 to 56 in 2001, to 58 in 2008, and to 60 in 2012. Moving forward, it’s essential for the government to carefully evaluate the potential impact and benefits of an additional increase in retirement age, considering the broader context of our workforce needs and the diverse challenges that lie ahead.

By focusing on solutions that bolster the financial readiness of workers, we can address retirement concerns without the need for further adjustments to the retirement age.

CONCERNED CITIZEN

Selangor