World Bank Senior Economist, Dr Matthew Dornan stressed that the proposal to raise the retirement age to 65 is not a form of punishment for the young, but rather can stimulate the country's economic growth.
In his speech titled Labour and Longevity: Responding to the Challenge of an Ageing Population at the International Social Welfare Conference organised by the EPF yesterday, he stressed that the belief that the elderly will 'take' job opportunities from the young is a myth that has been spreading for a long time.
According to him, older workers who remain active and continue to receive income will increase consumer spending, thus contributing to economic growth and the creation of more job opportunities.
He explained the economic trend that when spending increases, more jobs can be created which is supported by the findings of studies in Malaysia, except in the public sector which is bound by recruitment limits.
In this regard, he suggested that any increase in the retirement age be implemented gradually and fairly, and adjusted according to specific age groups to reduce public opposition.
Furthermore, retirement age can also be linked to people's life expectancy, as is practiced in several developed countries.
At the same time, Dornan also warned about the risks of early withdrawal of retirement savings which could lead to a lack of funds in old age.
Previously, Minister in the Prime Minister's Department (Law and Institutional Reform), Datuk Seri Azalina Othman Said also proposed a review of the retirement age, given that many Malaysians are still active and productive even after reaching the age of 60.
