PSM wants pension scheme for seniors instead of delayed retirement

Summary

• PSM has urged the government to introduce a pension scheme providing RM500 monthly to all citizens aged 65 and above, arguing that this would better support the elderly.

• PSM said that apart from Singapore, many Asean countries suffer from low worker savings due to exploitation by global corporations.

• The party adds that having senior citizens work longer also poses career advancement challenges to younger workers.

PSM today called for a senior citizens’ pension scheme for those aged 65 and above instead of extending the mandatory retirement age from 60.

In a statement today, the party’s central committee member K Arveent said that Malaysia should not always align its domestic policies with other Asean nations.

“I find myself questioning the need for such a policy. Shouldn’t life become easier for the people with more leisure time, especially in retirement, as the nation progresses?

“If the government is truly concerned about the welfare of senior citizens, it should implement the senior citizens’ pension scheme, as advocated by PSM.

“Providing RM500 per month to all elderly persons aged over 65 would go some way in helping them manage their living costs,” he said.

Arveent added that with the exception of Singapore, most Asean countries are exploited by global corporations seeking cheap labour, which results in lower savings for workers across the region, which then creates hardship in their old age.

He lamented that instead of targeting the large profits made by employers, governments are allowing conditions that push workers to delay retirement, with many over the age of 60 still employed on a contractual basis, often despite their poor health.

He said they are often also forced to bear the burden of supporting children who also struggle with income insecurity.

“Even from an employer’s perspective, raising the retirement age creates challenges. Older workers must be retained, hindering the career progression of their potential successors.

“Many companies already struggle with succession planning because it takes too long for promotions to take place, leading experienced staff to leave.

“Increasing the retirement age would only make it harder for today’s youth to advance in their careers and take on senior roles,” he added.

Retirement age review

On Tuesday, Minister in the Prime Minister’s Department (Law and Institutional Reform) Azalina Othman Said suggested that the government consider increasing the official retirement age from 60 to 65, highlighting that many older Malaysians remain healthy and capable of continuing their professional contributions.

Bernama reported her saying that in several countries she has visited, including Asean member states, it is not uncommon for law ministers to serve well into their 70s, while judges are often allowed to remain in office until 65 or even 70.

The Human Resources Ministry today announced that it is reviewing the proposal to raise the mandatory retirement age to 65.

Bernama also reported Human Resources Minister Steven Sim as saying earlier today that the matter was being examined by a special committee led by the ministry’s deputy secretary-general, as it involved labour laws which fell under the ministry’s purview.

Sim said that the ministry would seek input and feedback from stakeholders, especially the public sector, workers, and employers, during the study to ensure compliance with international best practices.

Ministry studying proposal to raise retirement age to 65

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