Retirement Age Policy

Retirement age policy analysis: a case study

from HR perspective

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item_id=470

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Retirement Age Policy Analysis: A Case Study from HR Perspective

Tung Lai Cheng

School of Business & Adminitration

Wawasan Open University

Abstract

The combination of increased life expectancy and new retirement age policy in Malaysia has

important implications for human resource management. The Ministry of Human Resource of

Malaysia proposed a bill to increase the retirement age in the private sector to 60 years

which has resulted in a swirling debate. This has raised many arguments implying

demographic, economic, social and political points of view; both in favour of, and against the

proposed policy. Malaysia has been slower in taking steps to increase the retirement age as

compared to neighbouring ASEAN countries. It is imperative to study the implications of the

proposed new policy from the aspect of human resources. The collected qualitative data was

analysed for the emerging key themes using a coding method. The data was analysed by

reading through the scripts, sorting the opinions into specific response categories and

grouping common themes and repeated words and phrases. Findings suggested that most of

the respondents (86%) agreed to raise retirement age policy, some remains skeptical (14%).

Among the positive points stated by the respondents are the contribution to the nation growth,

ensure financial security, reduce reliance on foreign labours, mental and physical fulfillment

for older workers. The majors perceived drawbacks among respondents are on the issues of

potentially reduce job opportunity, career advancement for younger workers, low productivity

and higher cost compare to younger employees.

Keywords: retirement age policies, human resource management, Malaysia policy

Introduction

Retirement can be...