The Ministry of Higher Education, Labour and Skills Development in the Maldives has initiated consultations to extend the retirement age to 75. The ministry is currently working on developing legislation that would allow individuals to remain in or return to employment until the age of 75. This proposal is part of a broader strategy to address the challenges posed by an aging population and to enhance workforce sustainability in the Maldives.
The Impact of a Higher Retirement Age on the Maldivian Workforce
Raising the retirement age to 75 could have significant implications for both employees and employers in the Maldives. On one hand, it would allow the country to retain skilled and experienced professionals in the workforce for longer periods, thereby alleviating potential labour shortages and reducing the financial strain on the pension system. This move aligns with global trends, where countries are increasingly raising retirement ages in response to longer life expectancies and declining birth rates.
However, this policy shift also presents challenges. As workers age, there is a need for increased workplace accommodations, including ergonomic adjustments, healthcare support, and opportunities for continuous skill development. Furthermore, balancing the employment needs of both older and younger generations will require careful planning to ensure that job opportunities remain equitable.
Global Perspectives: How Other Countries Approach Retirement Age
Globally, the average retirement age in OECD countries is around 64 to 67 years. For instance, Greece, Denmark, and the United States have set their retirement ages at 67. The United Kingdom, currently at 66, plans to raise it to 67 by 2028, with further increases likely as life expectancy continues to rise. In contrast, countries like Sri Lanka and Bangladesh have significantly lower retirement ages, at 60 and 59, respectively.
The Maldives’ proposal to extend the retirement age to 75 is ambitious, placing it among the highest in the world. This decision reflects the government’s response to increasing life expectancy, which has risen substantially over recent decades. By 2100, global life expectancy could reach 81 years, making it imperative for nations to adapt their retirement policies accordingly.
Economic and Social Implications for the Maldives
The extension of the retirement age is not merely a matter of policy but one of economic necessity. As countries like Japan and Germany have demonstrated, a higher retirement age can help mitigate the economic impacts of an aging population by maintaining a larger, more experienced workforce. However, it also necessitates a comprehensive approach to managing the potential health and well-being challenges that come with an aging workforce.
In the Maldives, the introduction of this policy would likely require amendments to existing labour laws and the implementation of new protections for older workers. The government must also consider the social implications, such as the potential for increased generational tensions and the need for robust retraining programs to ensure that older workers can remain competitive in a rapidly changing job market.
A Forward-Looking Strategy for the Maldives
The Maldives’ exploration of extending the retirement age to 75 is a proactive response to the realities of an aging population. If implemented successfully, it could serve as a model for other nations facing similar demographic challenges. However, the success of this policy will depend on the government’s ability to balance the needs of older workers with those of the younger generation, ensuring that the workforce remains dynamic, inclusive, and capable of supporting the nation’s economic growth in the decades to come.
