Raising the retirement age to 65 is a step backward for future generations

RECENTLY, the Minister in the Prime Minister's Department for Law and Institutional Reform Datuk Seri Azalina Othman Said suggested that Malaysia should consider raising the mandatory retirement age from 60 to 65. Although she expressed this as a personal view, it has stirred public concern, particularly among the younger generation.

The minister believes it is a loss when capable individuals are required to retire at 60 while they are still productive and energetic.

With full respect to the minister and her generation, I believe this suggestion is misguided and misrepresenting the younger generation. Increasing the retirement age may seem like a practical idea on the surface, but in reality, it creates long-term consequences that primarily affect young people who are trying to enter or progress within the workforce.

We recognise and appreciate the decades of service and knowledge that senior professionals bring. There is no denying that they have helped build the industries and institutions we rely on today.

However, there is a time for everyone to contribute and a time to step aside so others can lead. Keeping older workers in the same positions for longer will only reduce opportunities for career growth among the younger workforce.

Today’s economy is driven by adaptability, digital literacy and innovation. These qualities are often strongest among younger professionals who have been trained with current technologies, tools and thinking.

If older workers remain in positions of leadership or influence without rotation, organisations risk becoming stagnant. Opportunities for promotion disappear. Entry-level positions remain blocked. Graduates are left unemployed or underemployed despite being ready and eager to work.

This creates a bottleneck in the system. Middle managers cannot move up. Fresh graduates cannot get in. It affects the entire professional pipeline.

Over time, this discourages ambition, creates workplace resentment and forces many to seek employment overseas or in industries that do not match their qualifications.

The issue also reflects deeper social concerns.

According to the Department of Statistics Malaysia, birth rates among younger Malaysians have dropped by 11 per cent. Young people are postponing marriage and parenthood.

Financial insecurity, stagnant wages and unaffordable housing all play a part. Many of us cannot even afford to think about sex, let alone plan for a family.

When the cost of living rises but wages remain low, and jobs are scarce because older workers are not retiring, how can young adults be expected to build stable lives?

We must also recognise that energy levels and productivity do not stay the same with age. While some people may remain mentally sharp at 65 and beyond, others may struggle to meet the demands of a fast-changing professional environment.

Holding on to roles longer than necessary can also negatively affect efficiency and the overall growth of organisations. It may even compromise the wellbeing of those who feel pressured to continue working when they would prefer to retire.

A better solution would be to offer more flexible arrangements. Senior workers who wish to continue contributing can take on part-time roles, consultancy positions or serve as mentors to younger employees. This allows them to share their experience while making room for fresh perspectives and leadership.

This principle of renewal should also apply to politics. If we believe that people beyond 60 are still capable of contributing, then we should also ask whether those same individuals should continue to hold political office.

Malaysia must start creating more space for new leaders. Parliamentary and state seats should not be held for life. We must begin to ask the uncomfortable question. How did we allow our nation to be governed by a nonagenarian a few years ago?

Age does not automatically disqualify a person from leadership. But we must accept that younger leaders bring different ideas, experiences and energy that are more aligned with the current challenges we face.

Holding on to power and refusing to transition leadership creates a disconnect between governance and the people it is meant to serve.

It is contradictory to raise the retirement age in the workforce while keeping political positions tightly held by the same individuals year after year.

Change requires new faces. A country cannot move forward if it clings to the past.

Extending the retirement age might offer short-term financial relief by postponing pension payments. But it will likely deepen youth unemployment and make young people feel that they have no stake in the future of their own country.

This is not sustainable.

We must find a balanced and fair way forward. Let those who have served the nation with dignity enjoy their retirement. Let them remain involved if they wish, but not at the expense of the next generation’s progress.

We need policies that support young people’s growth while still respecting the contributions of those who came before them.

A nation that refuses to let go is a nation that stops moving. If we truly care about shared prosperity, we must ensure shared opportunity. That starts with making space for new leadership, new ideas and new energy.

Muhammad Naim Muhamad Ali, PhD, also known by the moniker Naim Leigh, is a Communication and Media Studies lecturer at the University of Wollongong Malaysia. The views expressed in this article are his own and do not necessarily reflect those of Sinar Daily.