The Optimum Age of Retirement Index (OAR-Index): The Case of Malaysia

Abstract

This paper shows a serial of crucial factors to be considered for any retirement plan anywhere and anytime. In our case, we evaluate the specific case of Malaysia. The same research evaluates nine crucial factors can affect directly or indirectly on the retirement plan of any Malaysian among the three largest races of Malaysia such as Malay, Indians, and Chinese. The main objective of this research is to propose a new approach to evaluate the optimum age retirement for Malaysians in general. Hence, this new index is entitled “The Optimum Age Retirement Index (OAR-Index).” The OAR-Index offers the possibility to evaluate the optimum age of retirement for Malaysians according to nine crucial factors expose in this research. Finally, the same document is given a serial of recommendations and policies to increase the age of retirement in Malaysia respectively.

Keywords: Retirement, Malaysia, Health care, EPF

JEL Classification: I1 and I3