WORDS LEE YIN LAN
 FEATURED EXPERTLEE YIN LAN Lecturer School of Accounting and Finance Taylor’s Business School |
As life expectancy increases, the concept of retirement is evolving. Healthy ageing has become a crucial focus for individuals and societies alike. This article explores how employment after retirement can contribute to healthy ageing, discussing both the benefits and challenges of this approach.
THE CHALLENGE OF HEALTHY AGEING IN RETIREMENT
Malaysia is transitioning into an ageing society, with the Department of Statistics reporting an average lifespan of 74.8 years in 2023.
The extended lifespan presents challenges. A 60-year-old retiree in Malaysia must support themselves for nearly 15 additional years, potentially straining public resources for medical and welfare aid.
Over the past decade, government expenditure on pensions and gratuities has averaged RM14.8 billion annually, reaching RM32.01 billion last year.
Projections suggest this figure could escalate to RM46.36 billion by 2030 and a staggering RM120 billion by 2040.
Retirement, a significant life transition, prompts reflection on how to embrace active ageing practices and maximize this phase of life. Many retirees are now considering continued employment as a strategy for healthy ageing and financial stability.
BENEFITS OF POST-RETIREMENT EMPLOYMENT FOR HEALTHY AGEING
Faced with a rapidly ageing population, encouraging seniors to supplement their incomes through active employment is emerging as a viable solution. This approach not only eases the financial burden but also contributes significantly to healthy ageing.
Countries with substantial ageing populations, such as Japan, Singapore, and Germany, actively promote post-retirement employment through tailored programmes. These initiatives stem from the belief that remaining active in the labour market yields multiple benefits for healthy ageing.
- Maintaining good physical and mental condition
- Fostering social connections
- Enhancing individual financial security
- Contributing to overall health and happiness
Research supports the positive impact of post-retirement employment on healthy ageing.
Studies across various countries have linked later-life employment to reduced risks of dementia and lower mortality rates from conditions often exacerbated by social isolation, such as strokes and heart disease.
A 2021 study by University of St Andrews scholars, published in a leading health journal, found that delaying retirement until 67 or older can reduce cognitive decline by up to 34% compared to earlier retirees. This finding underscores the importance of extended workforce participation in promoting healthy ageing and cognitive well-being.
ADDRESSING THE CHALLENGES OF RETIREE EMPLOYMENT
Despite the benefits, retirees may encounter challenges such as age discrimination and skills mismatch when re-entering the workforce.
Older workers often face bias from employers who favour younger candidates, viewing them as more adaptable and tech-savvy.
Additionally, older employees may be unfairly labelled as stubborn or resistant to change due to their extensive and longstanding experience.
Retirees
To address these challenges, retirees should proactively update their skills to align with current industry demands and tailor their resumes to highlight relevant experience.
Leveraging professional networks can also provide valuable job opportunities. Removing age identifiers from resumes, such as graduation dates, can help combat age discrimination, while adopting a modern resume format enhances competitiveness in the job market.
Employers
Employers can further contribute to creating an age-friendly workplace, offering flexible options such as remote work or part-time hours for older employees, while also implementing health programmes like screenings and fitness classes to support their well-being and boost productivity.
Additionally, using age-neutral recruitment and promotion practices ensures decisions are based on skills and qualifications, promoting fairness and inclusivity for all employees.
IN CONCLUSION
While ageing has traditionally been associated with declining productivity and viewed as a burden on society, this perception is evolving. With advancements in healthcare and a culture of lifelong learning, it is now recognized that individuals can maintain productivity and contribute to society well into their later years. Therefore, middle-aged and older adults approaching retirement or who already retired may consider exploring opportunities for continued engagement and fulfilment in the latter stages of life.
References:
- Department of Statistics Malaysia. (n.d.). Life Expectancy. OpenDOSM.
https://open.dosm.gov.my/dashboard/life-expectancy - Kivimäki, M., Walker, K. A., Pentti, J., Nyberg, S. T., Mars, N., Vahtera, J., Suominen, S. B., Lallukka, T., Rahkonen, O., Pietiläinen, O., Koskinen, A., Väänänen, A., Kalsi, J. K., Goldberg, M., Zins, M., Alfredsson, L., Westerholm, P. J. M., Knutsson, A., Theorell, T., Ervasti, J., … Lindbohm, J. V. (2021). Cognitive stimulation in the workplace, plasma proteins, and risk of dementia: three analyses of population cohort studies. BMJ (Clinical research ed.), 374, n1804. https://doi.org/10.1136/bmj.n1804
- Hale, J. M., Bijlsma, M. J., & Lorenti, A. (2021b). Does postponing retirement affect cognitive function? A counterfactual experiment to disentangle life course risk factors. SSM – population health, 15, 100855. https://doi.org/10.1016/j.ssmph.2021.100855
