Brunei News

Brunei

November 27, 2007

With Life expectancy in the sultanate reaching 74 years, the issue of extending the retirement age has not only seen the government of His Majesty's probe into the matter but has also sparked interest within several sections of the community as well. 

The increases in life expectancy, as a result of advances in medicine and better living conditions, have led people to believe that the current retirement age of 55 is too young. Several members of the public believe that, at the age of 55, the potential contribution of retirees may still be significant and relevant to the country's overall development. 

A former prominent figure in the civil service agreed that the current retirement age can still be considered young. "Thirty years ago, the age of 55 was the right time to retire, but now people are still active at 55 and therefore, we need to consider the potential of their contribution and how it could be useful to the country's development," he said. 

A human resource trainer who echoed the same view said that most people at 55 still have a lot to offer. “In terms of training, their experience can help the younger generation. If the retirement age were to be extended to 60 years, then this would give more time for soon-to-be retirees to mentor the younger generation." 

Commenting on the matter, Hj Suhaili, a civil servant, said that the extra time would provide civil servants to earn more money before they retire, especially those under the TAP scheme (Employers Trust Fund). "Based on calculations, the amount of money saved would not be enough for retirement," said Hj Suhaili who comes under the TAP scheme. 

Abdul Hamid, a retired civil servant, agreed and added that "the extra income earned would be useful in cases where we require medical services. Older people are more susceptible to health problems and therefore the extra money would come in handy." 

Others have suggested that the return rates as well as the contribution from employers, be increased instead of extending the retirement age. By extending the retirement age, other problems could surface such as an increase in unemployment rates. 

Members of the public have also suggested that there is a possibility that some employees would rather not work past the current retirement age, hence affecting their motivation to work, which may also affect productivity. 

Business owner Hjh Lina, shared her views on the issue. "If a decision to extend the retirement age to 60 years was made, it should not be made compulsory for everyone to retire at that age." She said that employees who reach the age of 55 should be assessed whether their services are still required by conducting performance appraisals. "If their performance appraisals were evaluated as positive, only then should they be re-hired until the age of 60 years,".

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