SINGAPORE: In Parliament on Tuesday (March 3), Manpower Minister Tan See Leng said that on July 1, 2026, the retirement age in Singapore will be raised to 64 years old, and the re-employment age to 69 years old.
At present, the retirement age is 63, and the re-employment age is 68.
“This will give our seniors more flexibility and assurance, while enabling employers to retain experienced workers,” Dr Tan said, which keeps the city-state on track to raise the retirement age to 65 and the re-employment age to 70 by 2030, which the government announced in 2019.
In effect, by 2030, companies would be required to offer re-employment to their workers until they are age 70.
Dr Tan also said that this comes as Singaporeans live longer and healthier lives, leading to a shift from “managing the pressures of ageing, to unlocking the benefits of career longevity.”
The Minister noted that the way seniors work must also be transformed, through creating more flexible and varied paths for them to stay engaged and productive.
A more integrated approach to support career longevity is being studied by the Tripartite Workgroup on Senior Employment (TWG-SE). This includes allowing for workers to plan for later-stage career transitions at an earlier time. It also helps employers design jobs and workplaces that are age-friendly.
Dr Tan also said that the government will continue to strengthen policies around retirement adequacy policies to give seniors greater assurance.
Next year, the CPF contribution rates for senior workers will be increased by 1.5 percentage-points for workers aged above 55 to 60, and 1 percentage-point for workers aged above 60 to 65. This further supports workers who want to keep on working.
The CPF Transition Offset will also be extended for another year in order to help cushion half of the increase in employer CPF contributions.
The new retirement sums for cohorts beyond 2027 will be announced later this year, which will allow members to better plan ahead.
“With rising living standards, the new retirement sums will better reflect the savings needed to meet basic retirement needs in the future,” he said, adding that the government is committed to supporting seniors who are facing difficulties in building up enough savings despite their best efforts. A CPF Top-Up of up to S$1,500 for eligible Singaporeans aged 50 and older with CPF balances below the prevailing Basic Retirement Sum will be automatically credited this year.
Minister of State for Manpower Gan Siow Huang first announced that the retirement and re-employment ages would be raised in March 2024. /TISG
Read also: 69% Singaporeans expect to still work after retirement age—study
