Healthy Ageing Through Post-Retirement Employment: A Path to Active Living

WORDS LEE YIN LAN

FEATURED EXPERT
LEE 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:

  1. Department of Statistics Malaysia. (n.d.). Life Expectancy. OpenDOSM.
    https://open.dosm.gov.my/dashboard/life-expectancy
  2. 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
  3. 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

Reimagining Your Retirement with Entrepreneurship in Your Golden Years

WORDS PROFESSOR DR CHONG WEI YING

FEATURED EXPERT
PROFESSOR DR CHONG WEI YING
Deputy Director
Active Ageing Impact Lab
Taylor’s University.

The word “retirement” conjures images of endless days of relaxation, hobbies pursued at leisure, and perhaps occasional travel. However, this traditional view of retirement is rapidly evolving.

RETIREMENT IS JUST THE BEGINNING OF A NEW PHASE OF LIFE

Today, retirement is increasingly perceived not as an end but as a beginning—a phase of life during which individuals can leverage their decades of experience, skills honed over a lifetime, and a wealth of knowledge to contribute to society in meaningful ways.

The appeal of entrepreneurship has never been greater to individuals, attracting those who desire greater autonomy, choices, and possibilities for unlimited growth in their golden years.

WHY ENTREPRENEURSHIP?

The reasons for this shift are manifold.

Longer lifespan. For one, a longer lifespan has prompted individuals to redefine retirement. With the accumulated resources, such as financial savings and extensive professional networks, individuals might want to expand their activities to include continued work in some capacity, engaging in lifelong learning, pursuing new hobbies, or even starting new businesses after retirement.

Greater access to digital media. Additionally, the advent of the digital era has made access to information, resources, and networks easier than ever for individuals to start businesses from the comfort of their homes.

New goals. Individuals are encouraged to remain engaged, mentally alert, and physically active during their retirement years. Launching a business can offer a renewed sense of purpose, providing a compelling reason to greet each morning with enthusiasm and a goal to work towards. It embodies the pursuit of continued growth, learning, and self-challenge.

Leaving a legacy. In certain cases, embarking on entrepreneurship in later life serves as a powerful means to impart wisdom to the younger generations. This exchange across ages not only narrows the divide between the young and the elderly but also cultivates a culture of ongoing learning and cooperation. Embracing an entrepreneurial spirit in one’s retirement years not only enhances personal fulfilment but also benefits the economy and society at large through job creation, innovation stimulation, and economic growth.

IGNITING YOUR ENTREPRENEURIAL SPIRIT

Before deciding to jump into a business and get caught up in the excitement, it’s crucial to adopt a sober view of potential problems. You first must ask some questions early that might mitigate or prevent potential problems and avoid unnecessary grief.

Here are some practical questions designed to help you determine if starting a business during your golden years is the right decision for you:

  1. Do I have the skills and strengths required to start and manage a new business, or is it primarily seen as a hobby? How does this interest align with the practical aspects of running a business?
  2. Am I financially stable enough to start a business without jeopardizing my retirement savings? What funding options do I have in place?
  3. Do I have the physical and mental stamina required to start and manage a new business? How might this impact my health and lifestyle?
  4. How comfortable am I with taking risks at this stage in my life? Am I prepared for the possibility of failure
  5. Am I looking to build something that leaves a legacy, or am I interested in a venture that meets immediate goals? Who can provide advice and assistance?
  6. How can I leverage my professional and personal connections for support and growth opportunities? Who can be my mentor in the entrepreneurial journey?
  7. Is there a real demand for the product or service I plan to offer? How saturated is the market?
  8. Are there any cost-effective business models that can lower the business risk? How can these models significantly reduce financial exposure and operational risks?
  9. What is my exit strategy if the business doesn’t go as planned? How will this impact my future and finances?
  10. What are the legal implications of my business structure (for example: sole proprietorship, partnership, corporation), and how does it affect my liability and tax obligations? How do I ensure that my business practices comply with stated laws?

As you approach your golden years, it is you that will make the crucial decisions about whether to have a phase of relaxation or a stage for active participation, personal fulfilment, and societal contribution. Starting a business will not only transform your life but also enrich society, showcasing the untapped potential of your later years.