LETTERS: The extension of retirement age in Malaysia has been a subject of debate for several years with many pros and cons.
But with the present economic situation, taking care of those entering the job market remains a crucial issue.
There is a host of positives to retiring earlier at 60 or below. From the personnel/employees' perspectives, this may include more freedom, opportunities to travel, more time to devote to family and loved ones, improved health or starting a business venture that one is enthusiastic about.
Among retirees, when they meet, the sentiments are always positive, "You look younger", "You look better and glowing" and other similar positives that can be deduced from a stress-free and happier life.
There are, of course, downsides, including a lack of challenge, fewer social connections, the strain on savings and potentially a depressing effect on mental health.
Thus, working longer allows you to add more to your retirement savings. An extended retirement age may also work better for employers as they will spend less on training and developing new recruits.
The issue of extension of retirement age needs to be examined holistically. It has to be applied to all in the government and private sectors, which have different work culture and needs, therefore posing a challenge.
It is also important that the extension of retirement age be not executed selectively on individuals as this may lead to favouritism and abuse, and promote cronyism and corruption.
We have to think of those entering the job market, especially in the government sector, rather than try to extend the life of "dead wood" or unproductive personnel in the government sector.
Especially in the elite administrative sector in government, the employees should retire at 60 to give the opportunity to younger administrators who have been trained and waiting in line.
This exercise must be seen together with the idea of downsizing redundant posts in the government sector.
Sixty may not be too early to retire as studies have shown that some workers start to feel burned out at formal workplaces when they reach their late 50s.
Gallup, in its 20 years of tracking retirement trends, reported that in the pre-pandemic years of 2019 and 2020, the average preferred retirement age was 61.
As a comparison between demographic characteristics, the average person in Britain retires at 65 and with a life expectancy of 81, which is only a 16-year retirement to finance.
The average person in Malaysia retires at 60 with a life expectancy of 76, also a 16-year retirement period to finance. So, a simple comparative analysis on life expectancy will show that Malaysia's retirement age at 60 is generally acceptable.
But if the government wants a compromise between the World's Bank advice and local realities, 62 may be an acceptable age to retire.
But, again, we are not obliged to follow what the World Bank desires when there are many local realities to consider.
There is no urgency to decide on this matter. There is time to consider it from all angles.
With Covid-19 in our midst, there is genuine concern about unemployment, particularly graduates who are waiting to enter the job market.
TAN SRI LEE LAM THYE
Kuala Lumpur
The views expressed in this article are the author's own and do not necessarily reflect those of the New Straits Times