Beyond 60: Why HR holds the key to a human-centred retirement rethink

As Malaysia considers raising its retirement age from 60 to 65, the conversation is shifting beyond fiscal policy into deeper, more human terrain—one that HR leaders are uniquely positioned to navigate.

At the heart of this transformation is the growing realisation that extended working lives demand more than policy shifts. They require a fundamental rethink of how careers, roles, and wellbeing are managed across the employee lifecycle.

Jennifer Dunbar, an ICF credential executive and personal development coach who specialises in retirement transition coaching, is sounding the alarm on the unintended consequences of a top-down approach. “While working longer and retiring later may be fiscally necessary, this balancing of numbers risks the unbalancing of lives,” she told HRM Asia.

Dunbar explained that what was once a personal decision—whether to retire later for purpose or necessity—is fast becoming a mandate in many countries. Malaysia’s proposal follows similar moves elsewhere: Singapore plans to raise its re-employment age to 70 by 2030, and Denmark is eyeing 70 by 2040. But Dunbar argued that this shift risks reshaping life trajectories in ways many are unprepared for.

“The traditional prospect of a well-earned rest around 60 is giving way to a new reality—one where long and later years are still spent on the job,” she said. And while governments tout the concept of “active ageing,” Dunbar believes that prolonging employment must be about more than just keeping people economically productive. “It’s about sustaining their overall wellbeing,” she added.

This is where HR has a pivotal role to play. According to Dunbar, extended tenures bring with them a unique set of challenges—from physical and cognitive changes to the emotional toll of adapting to ever-evolving workplace demands. “The impact this can have on work performance can lead to anxiety, burnout, and other emotional and mental health challenges,” she noted.

Rather than relying on blanket policies, Dunbar called for a more human-centred and flexible approach to retirement. “What’s needed is a retirement rethink,” she said. “A flexible transition with redefined roles that consider the evolving needs and strengths of older employees.”

This could include phased retirements, consulting roles, part-time arrangements, or mentoring responsibilities—career pathways that allow senior employees to contribute meaningfully without being overstretched. “These roles should be thoughtfully designed and professionally guided,” she added, “to provide a renewed sense of purpose while recognising and valuing their continued contribution.”

READ MORE: Bridging the retirement readiness gap – A strategic HR opportunity

At the same time, Dunbar underscored the importance of balancing the needs of younger employees in this evolving landscape. “Organisations must also ensure that younger employees have clear opportunities for growth. Perceived promotion bottlenecks that limit advancement can lead to frustration, disengagement, and potentially higher attrition rates,” she said.

To create harmony across age groups, Dunbar advocates for collaborative, non-competitive pathways that foster intergenerational learning and respect. “Two-way mentorships encourage reciprocal learning—where institutional wisdom meets fresh perspectives and new technologies,” she said. “This lays the foundation for clear and sustainable succession pipelines.”

Ultimately, Dunbar’s message is a call to action for HR leaders. Raising the retirement age is not just about financial viability—it is a chance to reimagine what thriving careers look like at every stage of life. “Managing extended tenures isn’t just about implementing budget-driven policies,” she said. “It’s about creating workplaces where everyone can thrive—personally and professionally.”

As governments push forward with changes to retirement age thresholds, it is the HR community that must ensure those changes are matched with empathy, adaptability, and a deep respect for the evolving needs of a multigenerational workforce. In Dunbar’s words, “It’s an opportunity for visionary HR leaders to rethink career structures and knowledge transfer in ways that support employees at every stage of their careers.”