KUALA LUMPUR: The extension of the mandatory retirement age for civil servants could significantly improve their financial stability by allowing more time to pay off debts and increase savings.
This move aligns with global trends, where many countries have already adjusted retirement ages to address economic and demographic challenges.
Dr Sathiskumar K. Muthusamy, president of the Putrajaya Indian Civil Servants Association (IMAIYAM), highlighted that many civil servants take on major financial commitments, such as home loans, during mid-career.
“Most struggle to clear these debts by retirement, and their pensions often fall short of covering living expenses and education costs for their children,“ he said.
Extending the retirement age would provide relief by giving them more earning years.
Prime Minister Datuk Seri Anwar Ibrahim announced the review of the retirement age during the tabling of the 13th Malaysia Plan (13MP), acknowledging Malaysia’s shift toward an aging population.
Currently, civil servants retire at 60, the same minimum age set for private sector workers under the Minimum Retirement Age Act 2012.
Dr Sathiskumar proposed a flexible implementation, noting that not all sectors may suit a retirement age of 65.
“Critical fields like medicine and education benefit from experienced professionals, but health and performance monitoring must ensure service quality remains high,“ he added.
Aminuddin Awang, president of the National Union of Teaching Professions (NUTP), pointed out that Malaysia’s retirement age is lower than in countries like Singapore and the Philippines.
“This policy should be voluntary, not forced. While it may temporarily affect promotions and hiring, experienced staff should have the option to continue serving if capable,“ he said.
NUTP plans to recommend a health and performance evaluation system to ensure only fit employees extend their service. – Bernama
