PUTRAJAYA: Civil servants considering early retirement have been urged to ensure they have a robust support plan in place — such as a second career, alternative income streams and financial stability — to avoid hardship after leaving government service.
Public Service Department’s (PSD) pension division deputy director Anom Akmar Mohd Omar said that before making such a decision, the most critical factors to consider included debt obligations, family support, and the ability to sustain oneself without relying on social welfare programmes.
“If someone in their 40s is considering early retirement, they must have a back-up plan. They should make sure they have another job lined up, an alternative income stream, or solid financial support.
“This is to prevent them from being overwhelmed by financial difficulties and resorting to reversing their retirement or applying for assistance such as e-Kasih,” she said during an hour-long live podcast on the PSD’s official Facebook page today, which drew thousands of viewers.
Anom said that civil servants applying for early retirement generally fell into two main age categories.
Those in their 40s often retire early to pursue new careers, further their studies, join the private sector or government-linked companies (GLCs), take up overseas job offers, or continue a family business.
“For instance, someone who started working at 25 may, by 40, seek a career change, new skills, or a job abroad. This is part of long-term planning, but they must be thoroughly prepared,” she said.
By contrast, those in their 50s, nearing the mandatory retirement age of 60, frequently cite health concerns, a desire to spend more time with family, or challenges adapting to new technologies.
“Many want to retire alongside their already-retired spouse. Some suffer from health problems such as knee pain or osteoporosis.
“A growing trend now is retirement at 55, as this qualifies them for immediate pension payments,” she said.
Anom said that the minimum requirements for voluntary retirement included holding a valid pensionable post (PTB), being at least 40 years old, having served for more than 10 years, securing approval from the department head, maintaining a clean record with the Malaysian Anti-Corruption Commission (MACC), having no disciplinary cases, and no outstanding educational sponsorship agreements.
“Those declared bankrupt may still apply for early retirement, but they must first consult their head of department and obtain clearance from the Department of Insolvency. A valid bank account is also required for pension disbursement,” she said.
She also urged civil servants to be financially literate and carefully weigh the risks before deciding to leave service early.
“Early retirement does not only affect the individual. If poorly planned, it can have repercussions for families and society,” she said
© New Straits Times Press (M) Bhd
