Speaking at the EPF’s International Social Wellbeing Conference here today, Reinfeldt, an economist who served as Sweden’s prime minister from 2006 to 2014, said many retirement norms were based on outdated assumptions.
“We still have people who think they should retire at 65 and enjoy decades of leisure, but many of them will live to 100,” he said.
Instead of keeping older individuals in demanding jobs, he proposed transitioning them into roles that suit their evolving abilities, supported by strong policy frameworks.
Reinfeldt highlighted Sweden’s strategy, which includes tax incentives for those working beyond 65 and robust retraining programmes, especially for workers over 45, which help them adapt to technological changes.
He also noted that Swedish labour unions and employers have invested in lifelong learning through collective agreements since the 1970s.
Warning of growing inequality across the globe, Reinfeldt said capitalism must be inclusive and backed by deliberate political efforts to spread its benefits.
He advocated a renewed social contract that combines entrepreneurial success with equitable policies.
Reinfeldt credited Sweden’s prosperity to its tax-funded social model, which provides free education, universal healthcare, elderly care, and a pension system tied to lifetime earnings and market performance.
He said these policies had boosted workforce participation, especially among women.
Reinfeldt concluded that Sweden’s proactive response to demographic and economic changes offered a valuable blueprint for other countries to emulate.
“This transformation is coming to every developed country – and to Malaysia. The time to prepare is now,” he said.
Last month, law and institutional reform minister Azalina Othman Said proposed that the government study extending the retirement age to 65, saying many people remained active and capable well into their 60s.
In 2014, Malaysia raised the retirement age to 60 for both the public and private sectors, up from 58 and 55, respectively. The move was aimed at providing financial support for the elderly while promoting healthy, active ageing.