From Malay Mail · Ida Lim · · 3m
How Malaysia can raise retirement age from 60 to 65
Experts propose gradual retirement age increase to 65 for Malaysia to match rising life expectancies.
In brief
Experts propose gradual retirement age increase to 65 for Malaysia to match rising life expectancies. Malaysia should gradually raise retirement age from 60 to 65 by 2035 to align with longer lifespans, with flexible options for early retirement based on work history. Originally reported by Malay Mail.
Malaysia's current retirement age
Malaysia's minimum retirement age is 60 for private sector employees, while civil servants have a mandatory retirement age of 60.
Global pension expert William Price's proposal
Global pension expert William Price proposed Malaysia raise retirement age to 65 to match improved life expectancies, noting some countries raised it rapidly during crises.
Gradual retirement age transition
Malaysia could gradually increase retirement age by three months each year, starting from 60 to 65 over a period of time.
How the transition works for workers
A 40-year-old would retire at 65 after 20 years, while a 59-year-old would retire at 60 years and three months.
Linking retirement age to life expectancy
Malaysia could link retirement age to DOSM life expectancy figures, adjusting based on whether people live longer.
DOSM life expectancy data
DOSM reports babies born in Malaysia in 2026 have life expectancy of 75.5 years, with 60-year-olds expected to live 20.2 years more.
Flexible retirement options
Workers who started at age 16 could retire earlier than those who started later, based on work history and contributions.
Rajen Devadason's timeline
Licensed financial planner Rajen Devadason suggested raising retirement age to 65 by 2035 and 70 by 2050 through gradual stages.
Addressing job concerns
Rajen noted higher retirement ages won't deprive younger workers of jobs as older workers take on different roles and skills.
ILO's flexible retirement approach
ILO suggested a retirement age range of 60 to 65 with flexibility for health concerns or family responsibilities.
Age-inclusive workplace policies
ILO recommended policies to prevent age discrimination and ensure older workers have dignity and opportunities in the workplace.
Benefits of working longer
Working longer helps fund retirement, provides income stability, and allows older workers to contribute meaningfully.
Age discrimination in the workplace
Older workers face discrimination in the workplace, but policies can help ensure they are treated with dignity and have opportunities.
Workforce complementation
Older and younger workers can complement each other's strengths, with older workers providing experience and younger workers bringing new skills.
What happens next
Malaysia needs political will to gradually raise retirement age from 60 to 65 by 2035 to address rising life expectancies.
The short version
Malaysia should gradually raise retirement age from 60 to 65 by 2035 to align with longer lifespans, with flexible options for early retirement based on work history.
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