Is There a “Right” Retirement Age? A Look at Reality, Families, and the Future
Once again, the conversation about increasing the retirement age has resurfaced. This time, it followed a suggestion by Datuk Seri Azalina Othman Said, Minister in the Prime Minister’s Department (Law and Institutional Reform), that the government consider raising the retirement age to 65. While this was her personal opinion, it sparked a flood of debate online and offline, with strong opinions on both sides.
My take? Raising the retirement age isn’t inherently good or bad—it’s inevitable.
A Global Trend
Across the globe, countries are gradually raising retirement ages. In much of Europe, the standard retirement age is now 65 or higher, with Denmark and Norway leading at 67. In Asia, Singapore plans to increase its statutory retirement age from 63 to 65 and the re-employment age from 68 to 70 by 2026. Japan has set its age at 65, while Korea, India, Vietnam, Cambodia, and Thailand currently sit at 60 but will likely follow suit. China recently raised retirement ages for the first time in decades, moving women in blue-collar roles from 50 to 55, white-collar women from 55 to 58, and men from 60 to 63.
The shift is clear: the world is adapting to longer life expectancies and the realities of aging populations.
Two Sides of the Coin
Critics argue that raising the retirement age blocks opportunities for younger workers. While that concern has some merit, the real culprits behind job displacement are technological advancement and automation—not older workers. Artificial intelligence and mechanization are already reshaping the labor market, particularly in white-collar roles.
In Malaysia, unemployment remains low, at 3.1% in May 2025, thanks in part to government interventions. Yet, the civil service—one of the largest in the world relative to population—is under immense financial pressure. With over 930,000 pensioners and rising, sustaining pension payouts is increasingly difficult, even after the retirement age was raised from 55 to 60 in 2013. The shift toward EPF contributions reflects this reality.
Families and Financial Responsibility
The modern family structure has changed dramatically. Adult children can no longer be relied upon to support aging parents in the same way as previous generations. Smaller family sizes and geographic mobility mean that retired couples are often left to fend for themselves.
Consider this scenario: two adult children in their late 30s are supporting their parents in their early 60s and their grandparents in their 80s, all while raising their own children. Three- to four-generation households are increasingly common, and longer life expectancy, while a blessing, can also be a heavy financial burden.
With fewer siblings to share responsibilities and young adults delaying marriage and childbirth, the financial strain on families is real and growing. Allowing seniors to work longer—if they are able—offers a practical solution, reducing dependency and easing the burden on younger generations.
Healthy, Active, and Ready to Work
Thanks to better healthcare, education, and awareness of healthy living, many seniors in their 60s and 70s are physically and mentally capable of continuing work. Some may choose to retire, while others may need—or want—to continue contributing, whether to support themselves, their children, or their extended families.
Working longer also provides social benefits. Retirees who leave the workforce too early can experience isolation, losing the daily interactions and sense of purpose that come with employment. Remaining active in the workforce can help seniors maintain independence, social connections, and mental well-being.
A Stopgap, Not Forever
Raising the retirement age is not about making anyone work indefinitely. It’s a stopgap solution to demographic and economic realities. No one expects to work forever; everyone wants to enjoy retirement. But life has changed. Families, work, and financial systems have all evolved, and so must our approach to retirement.
Demographic shifts—longer life spans and declining fertility—are reshaping economies, societies, and families. China, for instance, abandoned its one-child policy in 2015 to address the growing need to support an aging population. Malaysia and other countries will inevitably follow similar paths, adjusting retirement policies to reflect these pressures.
Looking Ahead
Whether the retirement age is 60, 65, or 70, everyone eventually reaches that stage of life. When considering whether raising the retirement age is “good” or “bad,” it helps to view the issue from multiple perspectives: the government, employers, younger adults, and older adults themselves.
Older workers should have the choice to continue working if they are able, while employers can provide options for early retirement or roles suited to each individual’s health and capabilities. This balance ensures independence, purpose, and financial security for seniors, while maintaining fairness and opportunities for younger generations.
Ultimately, this isn’t just an economic issue—it’s a family issue, a social issue, and a societal challenge. By understanding the realities of aging, longer life spans, and family responsibilities, we can approach retirement planning with foresight, compassion, and pragmatism.
The retirement age may continue to rise—but with choice, preparation, and support, everyone can navigate this change with dignity, independence, and a sense of purpose.