Here we go again—another wave of opinions about raising the retirement age. The latest spark? A suggestion by Minister in the Prime Minister’s Department (Law and Institutional Reform), Datuk Seri Azalina Othman Said, that the government consider raising the retirement age to 65. Her comment, though personal, quickly ignited a public debate: Is this a good idea—or a bad one?
My take? Neither. It’s not about “good” or “bad.” It’s unavoidable, inevitable.
The Global Trend
Countries worldwide are gradually increasing their retirement ages. In much of Europe, retirement is 65 or older, with Denmark and Norway leading at 67. Across Asia, Singapore is following suit, planning to raise the statutory retirement age from 63 to 65 and the re-employment age from 68 to 70. Japan is at 65. Korea, India, Vietnam, Cambodia, and Thailand currently stand at 60—but changes are expected. China, too, is gradually adjusting: women in blue-collar roles now retire at 55, white-collar women at 58, and men at 63.
Two Sides of the Coin
Critics argue that raising the retirement age will limit job opportunities for younger workers. While this concern has some merit, technology—not older workers—is the bigger disruptor. Automation and AI are already replacing roles, particularly in white-collar sectors.
With the unemployment rate hovering at a low 3.1%, governments remain committed to keeping jobs available, even stepping in as employer of last resort. Yet, maintaining pension payouts is becoming increasingly difficult. Malaysia alone has over 930,000 pensioners—civil servants, judges, former servicemen, and senators—while the civil service workforce is among the largest in the world relative to population. The rising number of retirees, coupled with longer life expectancy, has pushed governments to shift from pensions to retirement contributions like EPF.
The Changing Family Structure
Families are smaller. Children move away for work or study, leaving retired couples to fend for themselves. Multi-generational families are increasingly common, meaning that adult children in their 30s may find themselves supporting their own children, parents, and even grandparents—all at the same time. With fewer siblings, the financial burden falls on fewer shoulders.
The good news? Many older adults today remain active, healthy, and capable of working well into their 60s and even 70s. Raising the retirement age simply gives them the option to continue working if they choose. Some may need the income to support themselves or help adult children; others may want to stay socially connected and mentally engaged.
A Stopgap, Not Forever
No one expects anyone to work indefinitely. Retirement is about freedom, personal pursuits, and life beyond the office. Raising the retirement age is about adjusting to demographic and economic realities—longer life expectancies, shrinking younger populations, and evolving family support structures. Governments simply cannot sustain ever-growing pension commitments if the older population keeps rising while younger generations decline.
China’s abandonment of its one-child policy in 2015 underscores the economic and social consequences of shrinking families supporting aging populations.
Flexibility Matters
Raising the retirement age does not force anyone to work. It gives older adults the choice. Employers can still offer early retirement or make health-based hiring decisions. Workers themselves can decide whether they are fit—physically and mentally—to continue.
Working longer also brings social benefits. Many retirees miss daily interactions, company outings, and casual conversations with colleagues. Continuing to work can prevent isolation and loneliness, improving mental health and overall wellbeing.
A Perspective for All Generations
If your parents are still working, wouldn’t you want them to remain independent and financially secure for as long as possible? Young people opposing a higher retirement age might consider the relief of knowing their parents can support themselves and aren’t a financial burden.
Ultimately, retirement age—whether 60, 65, or 70—is inevitable. Everyone has parents and grandparents. Viewing the proposal from multiple angles—the government’s fiscal realities, employers’ perspectives, older workers’ capabilities, and younger generations’ responsibilities—can provide a clearer picture of why raising the retirement age is not about being “good” or “bad,” but about adapting to the realities of our times.