Saturday, March 17, 2012
Retirement Age to be extended - proposal
At the moment, the Employment Act 1955 does not state any age for retirement, while the only regulation on age is the withdrawal of the Employees Provident Fund (EPF), which is set at 55 under the EPF Act 1991.
The Government is looking at the possibility of officially setting the private sector's retirement age to 60. This move comes following the proposal to raise the civil service retirement age to 60 from 58 last October.
Job seekers and employees believe that pushing up the retirement age for the private sector will necessarily mean fewer employment or promotion opportunities which experts say is more fallacy than truth.
Government would need to facilitate a conducive environment for firms to invest and expand so that job opportunities open up for talented and experienced employees to have the chance to move up the corporate ladder as business expands.
The Star said, according to reports, the Private Sector Retirement Age Bill will be tabled in parliament soon, with provisos to allow those who reach 60 to renew up to 64 and may contain a clause allowing people to retire earlier.
Here's something interesting..
Deloitte Consulting Malaysia executive director Andrew Lee says a recent study in Britain shows that a one-year extension of working life implemented increases real gross domestic product by around 1% after about six years following its implementation.
Dr Ong says the ‘fallacy of labour scarcity’ is not true.
“On the upside, two benefits are immediately clear. Firstly, because people work longer, raising the retirement age increases revenues coming into the social security system. Secondly, because people retire later, the payout to retirees falls,” he says. (Source: The Star)