“Retirement savings are still not enough for many, and many workplaces are not yet designed for older workers,” said Nik Maheran.
KUALA LUMPUR: The rising number of older Malaysians remaining in the workforce is highlighting gaps in retirement readiness, prompting renewed focus on the need to strengthen support systems in an ageing society.
Across the country, more individuals aged 60 and above are staying economically active, with some choosing to remain engaged while many continue working due to financial consideration.
This trend reflects a changing landscape where retirement is no longer a fixed endpoint, but an increasingly uncertain phase shaped by both opportunity and constraint.
Universiti Malaysia Kelantan Deputy Vice-Chancellor (Academic and International) Prof Datuk Dr Nik Maheran Nik Muhammad said insufficient savings remain a key factor, particularly among those who spent their careers in informal sectors.
“Most older Malaysians continue working because they need the income, not just because they want to stay active. So while ‘active ageing’ sounds positive, for many, continuing to work is actually a necessity, not a choice,” she said when contacted by Bernama.
Malaysia is already transitioning into an ageing society, with those aged 60 and above expected to make up about 15 per cent of the population by 2030, according to the Department of Statistics Malaysia (DOSM).
As of Sept 30, 2025, a total of 310,100 elderly contributors were still actively contributing under the Self-Employment Social Security Act, reflecting the growing participation of older individuals in the workforce
In the context of this year’s Labour Day theme, ‘Pekerja MADANI, Kesuma Bangsa’, the continued participation of older Malaysians in the workforce highlights the enduring value of their experience, while also underscoring the need for stronger retirement support.
Nik Maheran said gaps in retirement readiness include inadequate savings under the Employees Provident Fund (EPF), uneven income levels among retirees, and limited protection for those in informal employment.
“Retirement savings are still not enough for many, and many workplaces are not yet designed for older workers,” she said, adding that more flexible working arrangements and age-friendly job designs could better support this segment.
Meanwhile, Institute of Strategic and International Studies Malaysia (ISIS Malaysia) Economics, Trade and Regional Integration Division director Calvin Cheng said the rise of the ‘silver workforce’ is also shaped by broader structural shifts in the labour market.
He noted that many older workers today share similarities with gig economy workers, particularly in terms of income flexibility and also exposure to weaker protections.
“Many of these older workers end up in gig or precarious informal work…and similarly, it is likely many of today’s necessity-driven older workers were themselves gig or informal workers earlier in their careers.
“This same structural logic explains why stable, quality employment is declining, and why maintaining a decent standard of living for retirement feels increasingly out of reach for many workers,” he said.
On existing frameworks, Cheng said Malaysia’s social protection system including the EPF, Social Security Organisation (PERKESO) schemes and the Employment Insurance System is relatively well-developed by regional standards.
However, he said gaps remain in both coverage and adequacy, particularly as protections are largely tied to formal employment.
“Close to half of Malaysia’s workforce is not meaningfully covered by any formal retirement system,” he said.
Looking ahead, Cheng said demographic ageing is inevitable but also presents an opportunity to better support and harness the contribution of older workers.
“The labour market of the future will simply be an older one. If it continues unabated, the future may see even more disparities between well-protected workers and those in informal employment,” he said.
He added that strengthening retirement security and workplace inclusivity will be key to ensuring that older Malaysians can continue contributing meaningfully, while also having the option to retire with dignity.
