This paper proposes a list of crucial factors that can be considered as a template for universal retirement plan. Malaysia is used as the base of our modeling. Nine crucial factors that are identified to have direct or indirect effect on the retirement plan among the three largest races in Malaysia, namely the Malay, Indians and Chinese are examined. The main objective of this research is to propose a new approach to evaluate the optimum age retirement for Malaysians in general. Hence, this new index is entitled "The Optimum Age Retirement Index (OAR-Index)". Based on the findings, the study proposed that Malaysia would be well served to increase the retirement age of the country's workforce and proposes a number of recommendations and policies to complement the retirement-age extension.