Strategies for Active Ageing, Retirement in Malaysia
By Ms Lee Yin Lan, Lecturer at the School of Accounting and Finance at Taylor’s Business School, Faculty of Business and Law, and member of the Active Ageing Impact Lab at Taylor’s University
Retirement is a significant period in one’s life that prompts reflection on how to embrace active ageing practices and maximise this phase of life, including continued employment.
The question of what to do after retirement and employment becomes increasingly pertinent, as Malaysia transitions into an ageing society, with an extended average lifespan of 74.8 years according to 2023 data from the Department of Statistics .
However, a retiree aged 60 has to support him or herself for another 14.8 years or more, and this will burden public funds in providing medical and welfare aid to the ageing community.
At a closer look in Malaysia, over the past 10 years, government expenditure on pensions and gratuities averaged about RM14.8 billion , and last year, it was at RM32.01 billion. The amount is anticipated to increase to RM46.36 billion by 2030 and RM120 billion by 2040 .
Faced with this rapidly ageing population, one of the ways to finance older persons is to encourage them to supplement their incomes through active ageing.
Ageing and productivity
Several countries with significant ageing populations, including Japan, Singapore, and Germany, actively support post-retirement employment through tailored programmes and initiatives. They believe that being active in the labour market will bring about benefits such as keeping the seniors in good physical and mental condition, fostering social connections, enhancing individual financial security, and contributing to their overall health and happiness.
According to studies in various countries, employment in later years has been linked to a reduced risk of dementia and lower mortality rates from strokes and heart disease caused by social isolation .
In 2021, a study published in a top health journal by the University of St Andrews scholars found delaying retirement until the age of 67 or older can reduce cognitive decline by up to 34 %, compared to those who retired earlier, highlighting the importance of extended workforce participation in promoting healthy ageing .
Despite the benefits, retirees may encounter challenges such as age discrimination and skills mismatch when re-entering the workforce. Older workers often face bias from employers who favour younger candidates, viewing them as more adaptable and tech-savvy. Additionally, older employees may be unfairly labelled as stubborn or resistant to change due to their extensive and longstanding experience.
Upskilling; putting an end to ageism
To address these challenges, retirees should proactively update their skills to align with current industry demands and tailor their resumes to highlight relevant experience. Leveraging professional networks can also provide valuable job opportunities.
Employers can further contribute to creating an age-friendly workplace, offering flexible options such as remote work or part-time hours for older employees, while also implementing health programmes like screenings and fitness classes to support their well-being and boost productivity. Additionally, using age-neutral recruitment and promotion practices ensures decisions are based on skills and qualifications, promoting fairness and inclusivity for all employees.
Removing age identifiers from resumes, such as graduation dates, can help combat age discrimination, while adopting a modern resume format enhances competitiveness in the job market.
While ageing has traditionally been associated with declining productivity and viewed as a burden on society, this perception is evolving. With advancements in healthcare and a culture of lifelong learning, it is now recognised that individuals can maintain productivity and contribute to society well into their later years. Therefore, middle-aged and older adults approaching retirement or who already retired may consider exploring opportunities for continued engagement and fulfilment in the latter stages of life.
Sources:
1. https://open.dosm.gov.my/dashboard/life-expectancy
2. https://theedgemalaysia.com/node/700728
3. https://www.nst.com.my/news/nation/2024/03/1025556/zaliha-govt-pension-payout-increases-rm-1-billion-annually
4. https://www.bmj.com/content/374/bmj.n1804
5. https://research-repository.st-andrews.ac.uk/handle/10023/23523
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