Higher retirement Age - Medical Insurance

The reluctance of insurers to provide medical coverage for the elderly is one of the hurdles employers face in extending the retirement age of workers. This is among the issues that the Malaysian Employers Federation (MEF) would like the government to address when considering amendments to the Retirement Age Act.

MEF executive director Shamsuddin Bardan said the attitude of insurance companies toward older people made it expensive for employers to provide medical benefits for workers past the age of 50.

“Even if medical insurance is granted, the premiums are higher,” he told FMT. “MEF feels older employees should not be discriminated against.”

The Retirement Age Act, which raises the compulsory retirement age from 55 to 60, comes into force this July 1. It will go through a trial period of six months, during which the government will gather feedback for future amendments.