Not so golden years
There is a growing number of senior citizens who want or need to continue working
A growing number of older Malaysians are spending their golden years earning their keep. Some do it to stay active. Others have mouths to feed. Whatever the reason, the supply of workers aged 60 and above is much higher than market demand.
PETALING JAYA: Ready, willing, and able.
As cliched as that may sound, there is a growing number of senior citizens in Malaysia who want or need to continue working.
The supply of workers aged 60 and above currently outstrips the demand for them, said a report titled “National Strategic Development Plan on Ageing Population: Inclusion and Employment of Malaysia’s Ageing Population”.
The report forecasted that within 10 years (by 2030), the number of aged workers would be about 1.2 million people but the demand for such workers based on current trends would only increase to about 545,000 people.
It also found that while some 40% of the respondents aged 40 and above do not wish to be part of the labour force when they reach retirement age, 32% of them intend to be self-employed.
The report was published in January by the Institute of Labour Market Information and Analysis (Ilmia), an independent entity started by the government under the purview of the Human Resources Ministry in 2005.
Its task is to analyse labour market trends and emerging human capital issues.
Malaysian Healthy Ageing Society adviser Prof Nathan Vytialingam said there was a segment of older Malaysians who remain in the workforce because they want to be active.
“Self-respect and dignity is their main factor why they want to work. When you have a purpose in life, you boost your physical and mental wellbeing.
“Work has become a necessity for the older generation to keep healthy. Health and employability go together,” he said.
He said, however, there was a portion of older workers who still have to slog away to make ends meet, even in low-paying and unskilled jobs.
“For those in the lower-income bracket, they may have to work because it is a means needed for survival.
“In the United States, people work partly because there is a financial need as their savings have taken a hit. We have the same problem here,” he said, citing a 2016 study by the Employees Provident Fund (EPF), in which subscribers ran out of EPF savings within three to five years after retiring.
Among the reasons that led to such a situation, he said, included still having to service their house loans or having to pay for their children’s education.
“Financial abuse is becoming a big thing where the young are still depending on their parents. The cost of living is high but their wages have not kept up,” he said.
Ilmia adviser Lee Chee Sung said most people were living longer because of health and other improvements in the quality of life.
However, he noted it was hard for them to live comfortably from the savings they have amassed for their golden years.
“Some may not have enough and may have to continue working unless they have the good fortune of an inheritance or if their children are able to support them.
“The typical amount of their EPF savings is about 24% of their wages, so you can’t say their savings (portion) are too low.
“It may be because the base (salary) has been low, so they have not set aside the amount that they need,” he said.
He said some ways to counter old-age poverty was to strengthen financial education, even among young workers.
Labour laws, he said, should also be reviewed to ensure that older workers were not discriminated against if they are seeking employment beyond retirement age.
Assoc Prof Dr Tey Nai Peng, who is an expert in population studies, also agreed that there was a number of senior citizens who are still having to work due to financial constraints.
“It is not surprising that many have to continue working to make ends meet, and support from children is dwindling due to demographic and social changes as well as the rising cost of living,” he said.
Besides providing tax incentives for companies to hire older workers, he said other suggestions to help older workers would be to provide flexible and remote work arrangements.
“Skill upgrading and providing microcredit for them to set up businesses may be considered,” he said.
Figures from the Statistics Department showed there has been a rising numbers of workers aged between 55 and 64.
In 2010, workers in that age group numbered about 804,000 persons. In 2016, this number rose to 1.1 million workers in the same age group.
Using the department’s population statistics, it can be calculated that in 2010, employed persons make up 43% of the 55-64 age group and this number has edged up further to 48% in 2016.