Raise salaries, not retirement age, says Cuepacs

 

Cuepacs says some Malaysians continue to pay housing loans even after they retire at 60.

PETALING JAYA:The largest civil servants’ union has dismissed a suggestion that the retirement age of government employees be raised from 60 to 65.

Cuepacs president Adnan Mat said that there was no urgent need for the government to raise the minimum retirement age.

He said the current retirement age had considered many factors, including giving the next generation a chance to revitalise the civil service system.

“Many workers aged 60 or older face issues in adapting to rapid changes in the work market, in addition to aging itself.

“Furthermore, the policy has already seen three amendments in the past 20 years alone,” he said in a statement, when commenting on the suggestion by the World Bank.

The World Bank said the government should revise retirement age policies and raise the minimum retirement age to to 65 in line with the average Malaysian lifespan.

Adnan also revealed that Cuepacs had received many such suggestions from various parties, including the private sector.

“Despite nearing retirement, many aging Malaysians are still trying to clear their housing loans. Some even have to pay until they reach 65,” he said,

Many were also worried that they would not have enough usable income after they retire.

However, he said, the underlying problem was not the age, but the salaries, and that the aging workers’ worries are being exacerbated by low salary schemes.

“Low pay compromises their savings, regardless of EPF or government pensions.”

He said the government should raise the minimum wage to better mitigate this issue, and also build more affordable housing for low-income populations. - FMT