RECENTLY, Datuk Seri Azalina Othman Said, Minister in the Prime Minister’s Department (Law and Institutional Reform), proposed raising the mandatory retirement age for Malaysian civil servants from 60 to 65. The proposal has sparked national debate.
On May 22, 2025, Prime Minister Dato’ Sri Anwar Ibrahim called for a comprehensive study on its financial, demographic, and employment impacts, noting the matter had yet to be tabled in Cabinet.
As Malaysia weighs this possibility, it’s critical to examine global retirement trends and what they might mean for the country’s aging workforce.
A Global Shift: Ageing Populations and Retirement Reform
With rising life expectancy and declining birth rates, many countries face growing pressure on their pension and healthcare systems. The World Health Organisation reports that the global population aged 65 and above stands at 830 million in 2024 and is expected to double to 1.7 billion by 2054. As retirees outnumber contributors to pension schemes in countries like Japan, Italy and the U.S., reforms are increasingly seen as necessary for sustainability.
Japan: Valuing Older Workers
Japan, home to one of the world’s oldest populations, raised its pension eligibility age to 65. Despite this, many seniors continue to work – often in flexible or part-time roles tailored for older adults. Japanese companies embrace this trend, supported by cultural values that emphasize productivity in later life.
Japan now has one of the highest employment rates for workers over 65, offering a model of how aging societies can remain economically vibrant.
Europe: Balancing Reform and Resistance
European countries have long debated retirement reform. Germany raised its retirement age to 67 in response to demographic pressure, aligning with the EU’s broader strategy for fiscal health. However, such reforms are not always welcomed. France faced mass protests in 2020 over plans to raise the retirement age from 62 to 64, with concerns over physical strain and declining health outcomes for older workers.
Nonetheless, gradual policy adjustments continue across Europe as governments balance economic imperatives with social equity.
United States: Gradual Adjustments
In the US, full Social Security benefits are now available at 67. Participation among workers aged 65 and older is rising due to longer lifespans and financial necessity. However, older Americans still face challenges such as age discrimination and lack of access to suitable employment or healthcare.
Policy advocates push for phased retirement options, workplace reskilling and broader support systems to accommodate aging workers.
Singapore: Strategic Phasing
Singapore has taken a structured approach to retirement reform. As of July 2022, its statutory retirement age is 63, with a re-employment age of 68. These thresholds will rise to 65 and 70 by 2030. This phased model offers predictability and planning opportunities for businesses and individuals alike while also addressing labour shortages and valuing senior talent.
Malaysia: Time for a Policy Update?
Malaysia’s current retirement age of 60 was last updated in 2013. Today, rising living costs, longer life expectancy and a healthier elderly population mean more Malaysians are willing and able to work beyond this age. Yet policy limitations remain.
According to the Department of Statistics report, in 2024, 3.9 million Malaysians – 11.6 per cent of the total population – were aged 60 and above. By 2040, that number is projected to rise to 6.4 million, or 17.3 per cent of the population. These trends signal the need for forward-looking retirement policies that reflect Malaysia’s changing demographics.
Raising the retirement age alone, however, is not enough. Implementation must be flexible and inclusive – offering part-time roles, remote work, retraining opportunities and healthcare support that meet the diverse needs of older workers.
Redefining Retirement
Ultimately, this debate is about more than setting a retirement age. It’s about rethinking how ageing and work coexist. Whether retirement comes at 60, 63, or 65, the real goal is to ensure that older individuals can choose how – and if – they want to continue working, without compromising their well-being.
Retirement should be a dignified, voluntary stage of life – not a rigid endpoint. Malaysia can learn from Japan’s respect for its elders, Europe’s evolving policies and Singapore’s strategic rollout. But most importantly, it must craft solutions that align with its unique social and economic context.
With careful planning and inclusive policy design, Malaysia has an opportunity to lead the region in shaping a modern retirement system – one that honours the contributions of its ageing population while securing future opportunities for all generations.
| Country | Statutory Retirement Age | Re-employment / Pension Age | Notes |
| Malaysia | 60 | – | Proposal to raise to 65 under discussion. |
| Singapore | 63 (as of July 2022) | 68 | Gradual increase to 65 (retirement) and 70 (re-employment) by 2030. |
| Japan | 65 | Many work beyond 65 | High senior employment due to cultural norms. |
| Germany | 67 | – | Gradually raised from 65 to 67 to address ageing population challenges. |
| France | 64 (proposed) | – | Facing public protests over increase from 62 to 64. |
| United States | 66–67 | – | Full Social Security benefits at 66-67, depending on birth year. |
| Italy | 67 | – | One of the highest retirement ages in Europe. |
Figure 1: Retirement Ages in Countries Where the Retirement Threshold Exceeds 60
The views expressed here are those of the writer and do not necessarily represent the views of Sarawak Tribune. The writer can be reached at drjohnlau@gmail.com.
