Retirement at 65: Opportunity or obstacle in Malaysia’s labour market?

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SHAH ALAM – Retirement is often seen as a well-earned opportunity to unwind after years of hard work, a time to reconnect with loved ones, explore personal interests and enjoy a slower pace of life.

In Malaysia, the official retirement age is currently 60, a limit set in 2014 after gradually increasing from 55 to 58. However, recent comments by Minister in the Prime Minister's Department (Law and Institutional Reforms), Datuk Seri Azalina Othman Said, have reignited debate about raising the retirement age yet again, this time to 65.

With projections indicating that by 2030, 15 per cent of Malaysians will be aged 60 or older, the issue of maintaining a balanced, productive workforce is becoming increasingly urgent. Would extending the retirement age help bridge the talent gap, or could it hinder younger workers from entering the job market?

Could it also offer renewed purpose and opportunities for older adults keen to remain active in their careers? Public sentiment varies, ranging from cautious support to outright opposition, with some calling for broader changes in employment policy.

For many Malaysians, the suggestion raises concerns about fairness and opportunity.

Ahmad Fadhlil

Ahmad Fadhlil Mohamad Pakarul Razy, a 41-year-old medical officer from Kuala Terengganu, believes such a move could worsen the already limited job market, especially for young graduates.

"Extending the retirement age could make the situation more difficult, especially for the younger generation trying to enter the job market,” he said during a recent episode of On the Ground by Sinar Daily.

He highlighted the growing bottleneck in his field, explaining that many new doctors remain in contract roles due to the limited number of permanent positions, a problem he worries will intensify if older professionals stay on longer.

Wan Najihah

Meanwhile, Wan Najihah Shahrin, a 25-year-old sales assistant from Perlis, shared similar concerns.

She believes raising the retirement age will significantly reduce opportunities for the youth and fresh graduates and feels that policymakers are too detached from the reality on the ground.

“If anything, I think we should lower the retirement age,” she added.

She added that the government must genuinely listen to the challenges young people face, rather than relying solely on statistics. Najihah argued that policymaking remains dominated by older politicians, which creates a disconnect from the aspirations of the younger generation.

“Politicians themselves should be engaging more with the younger generation,” she said.

Haslinda

Other perspectives focus on physical capability, fairness, and long-term social impacts. Haslinda Che Mohamad Aasdik, a 46-year-old secondary school teacher from Terengganu, raised concerns about the physical toll on ageing workers.

“By 65, it’s hard enough to climb stairs, let alone teach effectively,” she said, adding that extending retirement age may block younger generations from gaining much-needed experience in public service.

She suggested that the ideal retirement age should be 56, citing health, quality of life, and the importance of spending one’s later years meaningfully. She stressed that such a balance would allow younger workers, especially graduates, to gain experience in government and other sectors.

Mohd Hazam

Mohd Hazam Haron, 47, a farmer from Kedah, echoed this view, citing physical limitations and decreased productivity among older workers.

"For me, there's no need to raise the retirement age. Even at 65, that’s already quite old, some can barely walk, and their productivity has declined. Give the younger generation a chance,” he said, advocating instead for giving younger people room to rise and innovate.

Among young Malaysians, calls for better work-life balance and greater opportunities are growing stronger.

Zarif Haikal

Muhammad Zarif Haikal Ghazali, 26, originally from Kelantan and living in Bangi, believes workers deserve to retire earlier, not later.

"By the time you’re older, you want to spend more time with your family, you need that time, rather than continuing to work endlessly,” he said.

He added that raising the retirement age could restrict opportunities for younger people, as fewer vacancies would be available. While the job market remains relatively stable, he noted that hiring is often limited and influenced by personal connections.

Zarif also urged the government to consider reducing weekly working hours, stating that the current workload is increasingly demanding.

Muhammad Harraz

Similarly, Muhammad Harraz Muhaimen, 28, from Perak, said extending the retirement age is unnecessary and counterproductive.

“It’s better to reduce it, not add more years,” he said, while also highlighting ongoing challenges in the job market, including low wages and limited career advancement, areas he feels need urgent reform.

Azalina recently suggested that raising the retirement age could help address future workforce shortages.

She said the government should consider increasing the retirement age to 65, noting that many individuals remain active and capable well into their 60s.

Several countries have already adopted similar measures, and Malaysia could benefit from studying those models.

As of last year, individuals aged 60 and above comprised 11.1 per cent of the population, a figure expected to rise significantly.

In response to demographic changes, Malaysia previously raised the retirement age in 2014 to 60 for both the public and private sectors, up from 58 and 55, respectively.