Raising retirement age to 65: What are at stake for old & young Malaysian workforce?

 ​[[{“value”:”

AFTER a lifetime of toil, it is certainly a dream come true for many working-class citizens to just kick back and take it easy upon hitting retirement age of 60.

For private sector employees, many will plan on withdrawing their hard-earned Employee Provident Fund (EPF) savings to finance their golden years.

Hence, the rumblings of a government plan to raise the retirement age to 65 has not gone down well with certain segments of the population.

No, this is never a joke.

JPA is considering raising the retirement age from 60 to 65.

This can help the government:
• delay pension payouts
• make them pay income tax longer
• maintain workforce size
• reduce need to hire young people

Most people still don’t realise this. https://t.co/LZ8m1CpOJf pic.twitter.com/JLyLcNpwoa

— Bitcoin Malaya (@bitcoinmalaya) November 13, 2025

This raising of the retirement age is based on a recommendation by the World Bank that suggested increasing the withdrawal age for EPF from 55 to between 65 and 70.

It claimed the current age is too low and that a gradual increase would ensure the sustainability of Malaysia’s social protection system while allowing retirees to enjoy larger pension benefits.

However, according to fin-influencer Bitcoin Malaya (@bitcoinmalaya), this raising of the retirement age will have several consequences.

Firstly, it is argued that such a move will delay citizen access to their own retirement savings. As has been reported in various media, a perfunctory poll of the man-on-the-street showed that many were against this move.

Secondly, the move will be accompanied by a proposal to lengthen housing loan tenures to 50 years, thereby keeping more citizens in debt for longer periods.

Thirdly, this will allow the authorities to keep taxing middle class citizens for even longer periods.

Referencing US President Donald Trump’s move to introduce 50-year mortgages as a means to tackle the housing crisis, it was claimed that this is how a housing bubble is created.

Donald Trump:let’s do 50-year housing mortgage!

Here’s what’s happening

> People can’t afford house
> Their salary can’t cover their instalment
> Government allows 50-year loan
> Banks print more money via easy credit
> Now the instalment is suddenly “affordable”
>… pic.twitter.com/qsVAZVs9wG

— Bitcoin Malaya (@bitcoinmalaya) November 9, 2025

The crypto currency expert argued that such lengthy mortgages create the illusion of “affordable” instalments.

Ultimately, such a move only benefits property developers who can jack up prices while financial institutions can then charge even higher interest rates on housing loans.

Bitcoin Malaya further contended that by allowing lengthy mortgages coupled with denial of access to pension funds till a later age will keep the population in bondage and servitude.

This mood of doom and gloom was shared one commenter. It was observed that such a move will lead to fewer people putting their money in EPF.

Another summed it best when he proclaimed that citizens will be trapped running on an even bigger hamster wheel.

Few things to note about this proposed move.

Firstly, it must be clarified that if the Malaysian government raises the mandatory retirement age, an individual can still opt for early retirement.

The government is considering raising the mandatory retirement age which only specifies the age before which an employer cannot force an employee to retire. It does not remove an individual’s right to voluntarily leave the workforce earlier.

More pertinently, however, is the issue of access to EPF contributions for those in their golden years.

It is, after all, money belonging to contributors who may want the flexibility to access and use it as and when they see fit – not at age of 65 which many may not live to see. – Nov 14, 2025

 

Main image credit: Wealth Vantage Advisory – WVA/Facebook

The post Raising retirement age to 65: What are at stake for old & young Malaysian workforce? first appeared on Focus Malaysia.

“}]]