Reintroduce 55 retirement age instead, Amanah Youth tells Azalina

Summary

• Amanah Youth urges Azalina Othman Said to maintain the retirement age of 60 or revert to the former 55-year threshold.

• Its deputy chief says Azalina's proposal for extending the mandatory retirement age flies in the face of country’s economic and social landscape.

Amanah Youth has called on Azalina Othman Said to maintain the existing retirement age of 60 or consider reintroducing the previous 55-year-old limit.

In a statement today, its deputy chief Danial Al-Rashid Haron said that the minister in the Prime Minister’s Department (law and institutional reform)'s suggestion yesterday on extending the age limit for mandatory retirement contradicts the economic and social realities of the country.

"Instead, we urge the government to maintain the existing retirement age of 60, or consider reverting it to 55, as was previously implemented, based on several important foundations," he added.

Danial pointed out that access to employment opportunities remains a major obstacle, especially when the rate of new worker recruitment is trifling.

He cited data from the Social Security Organisation revealing that over 60,000 graduates have yet to secure permanent employment in 2024.

The Inland Revenue Board's report showed that more than 70 percent of new contributors under the age of 30 earn a monthly income of below RM3,000.

"This indicates a mismatch between market demand and the growing capacity of young talent who are not given room to develop.

“If the retirement age continues to be extended, job vacancies will become increasingly scarce, restricting the entry of new generations into both public and private sectors," Daniel said.

Yesterday, Azalina suggested that the government consider raising the mandatory retirement age from 60 to 65.

She opined that it was a loss to make people retire at 60 when many senior citizens remain healthy, active, and capable of contributing to the workforce, Bernama reported.

Retirement not last stop

Danial added that retirement is not the end of productivity, but rather a phase of life requiring a different approach, focusing more on wellbeing, mental health, and community contribution.

With Malaysians' life expectancy exceeding 75 years, he said it was important to provide space for the elderly to enjoy retirement with beneficial activities, such as volunteering, community service, family care, or involvement in local communities.

"Extending the retirement age will only place unnecessary workload on groups who should already be beginning to lead a quality and peaceful retirement life.

"We do not deny that many elderly people remain healthy and active after 60, but we must also be realistic that the decline in physical and cognitive abilities is inevitable for most individuals in occupations requiring high endurance, especially in construction, transportation, security, and frontline service sectors.

"Therefore, general policy should allow for a flexible retirement process, rather than forcing blanket age extensions without considering factors of individual and sectoral suitability," Danial added.

He also urged the government to not haphazardly change the retirement age policy, but instead, thoroughly examine the social and economic implications for workforce structure, young talent development, and the well-being of the elderly.

"Retirement is not about ‘inability to work’, but about making room for the next generation to begin contributing.

“And at the same time, providing a more dignified and quality retirement atmosphere for those who have long contributed their service," the Batu Tiga assemblyperson said.

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