Raising Retirement Age Could Improve Worker Well-Being

JAKARTA, investortrust.id - The National Economic Council (DEN) has emphasized that increasing Indonesia’s retirement age from 58 to 59 could enhance worker well-being and societal happiness. 

This adjustment, formalized under Government Regulation (PP) Number 45 of 2015 on the Implementation of the Pension Program, sets 59 as the retirement age and serves as a guideline for accessing the Pension Program managed by BPJS Ketenagakerjaan, Indonesia’s national social security agency.

Arief Anshory Yusuf, a member of the council, expressed strong support for the policy, noting its potential to improve life satisfaction among workers. He highlighted that Indonesian workers experience lower levels of happiness and social contribution compared to those in other countries.

“In many nations, retirement is a joyful phase of life. In Indonesia, however, it’s often the opposite—retirement is linked with sadness due to low social contribution and stagnant happiness levels. In developed countries, happiness usually begins to increase around the age of 40,” Arief said during the council’s inaugural press conference at the BPPT I Building in Jakarta on Thursday, January 9, 2025.

Arief explained that in Indonesia, happiness levels tend to plateau between the ages of 40 and 60. To address this, he stressed the importance of optimizing the retirement age to foster greater well-being among workers.

“This highlights the need to rethink and align retirement policies with the realities of an aging population. Adjusting the retirement age is a crucial step to ensure a better quality of life for workers as they age,” he concluded.