ILO economist calls for flexible retirement schemes
The Malaysian government is being urged to further provide post-retirement employment opportunities as the country sees an ageing population, according to reports.
Simon Brimblecombe, chief technical adviser and head of regional actuarial services at the International Labour Organisation, is calling for flexible retirement schemes that provide retirees with employment options.
Brimblecombe made the call as he underscored the benefits of hiring older and more experienced employees, Free Malaysia Today reported.
"There are people aged 55 and above with experience that employers actually need. Employers, worker representatives, and governments recognise the advantages of having elderly people in the workforce," he said as quoted by Free Malaysia Today.
The ILO economist further warned against incentivising early retirement for workers, adding that the late retirees shouldn't get penalised through reduction or recalculation of their benefits.
"We need to sell the notion that it's not about having to work longer or having a higher retirement age, but about providing support in tune to your needs if you need to retire for health reasons," Brimblecombe said.
Mandatory retirement schemes
Meanwhile, Brimblecombe also called for mandatory coverage for retirement schemes.
This is because those who can afford them don't think pension contribution is not mandatory, while those in the lower-income brackets don't have the funds to do it, according to the ILO economist.
"So, we need to move to mandatory coverage," he said.
Brimblecombe also raised concerns about how 33 to 45% of people were not covered by retirement schemes due to self-employment and informal sector work.
"I think it's because many still see this as a cost rather than an investment," he said.
Brimblecombe was among the speakers at the International Social Wellbeing Conference 2024, which was held on June 4 and 5.
The event gathered various experts, policymakers, and stakeholders to discuss challenges on ageing and retirement, especially ensuring income security for the elderly.
"The conference will also explore Malaysia's readiness for the ageing population, emphasising key aspects such as financial security, mental wellbeing, and promoting healthier lifestyles for individuals," the conference's official website read.
