By: Summer Kennard
Koror, Palau (July 17, 2025)– Palauans across generations are expressing strong opposition to a proposal in the fiscal year 2026 budget to raise the retirement age from 60 to 65, citing health concerns, limited job openings for youth, and disrupted personal retirement plans.
The proposal, embedded in a budget rider and motivated by concerns that Palau’s Social Security Fund may become insolvent within 15 years, has sparked frustration among both older and younger workers.
“I was so surprised when I read about it… First of all, 65 years is too long and too far,” said a 42-year-old nurse who has worked in the field for 21 years. “Nowadays, most people will have Noncommunicable Disease (NCD) by the age of late 30s so what makes them think that we can work at that age without having health problems?”
She emphasized the physical toll her work has taken. “I have vision problems and also memory problems now so I dink I cannot work until am 65 years of age… I wish our retirement age is 55 years so we can retire and enjoy.”
Another young respondent, age 24, said, “I oppose 65 as retirement age because ar chad el mo 65 a keep a urelir ea rngalk el graduate a diak a techellir mo ngmai ikel deruchall, also people who should retire won’t be able to enjoy themselves.”
A 34-year-old echoed similar sentiments: “I like the original retirement at 60 so people can enjoy their retirement. Realistically, death and health concern rises so retirees don’t make it to middle 70s or 80 so they should enjoy their retirement.”
Those nearing retirement were even more direct, with some sharing their personal disappointment and altered plans.
“I was very against it,” said a 59-year-old woman who had planned to retire next year. “It’s like I worked so hard to come to the shallow… I want to do plans for myself and with my kids.” She added that the process felt rushed and left many workers uninformed. “Most that I know retiring with me next year, we were looking forward to next year to retire.”
A 55-year-old was blunt: “No ngak a souak a 60. Leng most ra rechad ra Belau a diak bol 60 e mad. So 65 a kmal kemanget el time.”
For those in the healthcare field, health and patient safety were also key concerns.
“I am disappointed about it coz I am 57 now and already forgetful which puts children at risk esp giving their vaccines,” said a 57-year-old nurse.
Retirement plans are now in limbo for many. “Yes, the plan was to retire– enjoy time off from the time I have served,” said a 59-year-old. “Also letting us retire lets the younger generation start their careers in these positions or move up.”
A 57-year-old shared that she was looking forward to visiting her children in the U.S. once retired. “I am already planning that after 3 years when I retire then I can visit my kids in the States for a while.”
When asked if most in their age group wanted to work past 60, a 59-year-old man said, “Many people like my age have worked hard and earned retirement benefits and such so it’s sad pushing the retirement age 5 more years.”
Another nurse added, “Most people my age, especially nurses, want 60 years [retirement age] because we are not productive now as we were before.”
The Palau National Congress (Olbiil Era Kelulau) is expected to review the proposed budget later this year, with public opposition likely to be a major factor in deliberations.