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Education has been an important tool to develop a nation and it also plays an important role to develop individual human capital accumulation in the future. Besides that, this type human capital investment also reflects on individual lifetime earnings until their retirement age. Therefore, in this study we propose a simulation approach using cost and benefit analysis (CBA) equation to evaluate effects of the increased length on retirement age among tertiary education graduates in Malaysia. In this study, we use data from a survey on 200 tertiary education graduates in the labor market aged 25-55 years. All data were compute into CBA function using a simulation approach to measure the internal rate of return when the length of retirement age increases as yearly. The findings of this study shows the internal rate of return is not sensitive to the assumption made about the retirement age decisions; and the internal rate of return is not much change from the compulsory retirement age proposed by the government as 56 years. Therefore, we suggest the retirement age in Malaysia is effective for tertiary education graduates and should not be increase because it might not give much return to the graduates in the future.