NEW RETIREMENT POLICY AND IMPACT TOWARDS PUBLIC SECTOR EMPLOYEE RETIREMENT PREPARATIONS: MALAYSIAN PERSPECTIVE

Abstract

When CUEPACS called for Malaysian Government to increase the retirement age from 56 to 60, many believes that the bold moves provides more rooms for the civil servants to have prudent financial security for the retirement preparation. On 1st July 2008, government has approved the raising of retirement age from 56 to 58 years old and it was gazetted in PKPA 6/2008 (Reference No: JPA/PEN/228/25/1/Jld 4). However, many research shows that there are mixture feeling between those who prefer to retire early and those who do not. This paper aims to look at the association between the effects of new retirement age policy with the variables. This study involves 200 public sector employees from Majlis Amanah Rakyat (MARA) Headquarter in Kuala Lumpur as our respondents using questionnaire. Our objectives are (1) we want to determine whether there are relationship between new retirement age with job performance, career advancement, financial security and also job satisfaction, (2) what is the level of perception among the public sector employees on the factors affected by the new retirement age policy. The findings show that there are positive relationship between the new retirement age with job performance, career advancement, financial security and job satisfaction. Job performance and job satisfaction shows a moderate relationship with the value of 0.424 and 0.576 while career advancement and financial security shows a low relationship with the value of 0.256 and 0.388. High total mean score of career advancement (4.0286) and job performance (3.9075) shows that these two factors are highly affected by the new retirement age policy while financial security and also job satisfaction have moderate mean scores. We also found out that the percentage of civil servants that agree to the new retirement age (44%) is not much different from those who disagree (42%)retirement, public sector employees, job performance, financial security, career advancement, job satisfaction