Extending Retirement Age from 55 to 60

The most appropriate retirement age for a person depends on his or her personal choice and capacity. However, it is also limited by law. The Private Sector Retirement Age Bill 2012 to raise the retirement age from the current 55 to 60 years old would bring different levels of impact to the government, employers and employees.

The knowledge of experienced employees is indeed valuable, but they enjoy relatively higher salaries and better benefits, including medical expenses might increase. If these employees lack the ability to innovate and refuse to adjust, it will turn out to be a burden instead.

70 per cent of low-income earners spend all their EPF savings three years after their retirement. Extending the retirement age could force wage-earners to save more.

However, it will be painful for employees and employers to extend the retirement age if the work culture is not improved and the mindset is not adjusted. Working will become torturous for those who do not like or enjoy their work, and do not know how to learn and improve themselves.