Co-authors: Norma Mansor; Halimah Awang
Malaysia is experiencing a demographic transition characterized by a steady increase in the number and proportion of elderly persons in the population. The share of population over age 65 is projected to rise from 7.5 percent in 2020 to 14.5 percent in 2040. Yet even as health and longevity have improved greatly, employment rates among older workers have declined.
Extension of the working life would benefit older persons by augmenting income security and providing a sense of fulfillment. It would benefit society at large by mitigating worker shortages and reducing the burden of elder care. Many countries have raised or are considering raising the statutory retirement age. However, extending the retirement age is a viable policy option only insofar as improved health of older persons allows them to be productive without risk to their well-being. We estimate the potential for longer working lives by treating a drop in mortality among older persons as a proxy for improved health and employment capacity.
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