Retirement age raised to 64 in 2026, 69 for re-employment
Workers who want to work longer will have longer statutory protection with the raising of Singapore’s retirement age from 63 to 64 on July 1, 2026.
The re-employment age will likewise go up, from 68 to 69. Companies must offer eligible staff re-employment until that age, though on adjusted terms if necessary, or offer employment assistance in its place.
Minister for Manpower Tan See Leng announced on March 4 the timeline for the move, which was made with consensus among the tripartite grouping of his ministry, unions and employers.
The ceilings were last raised in 2022, after the Government said in 2019 that the retirement age would be increased to 65 and the re-employment age to 70 by the year 2030.
The lead time reflects ground feedback to give businesses and workers ample time to prepare.
Elaborating on the change during the debate on the Ministry of Manpower’s (MOM) budget, Minister of State for Manpower Gan Siow Huang said employers here have mostly been compliant. “Over nine in 10 senior workers who were eligible and wished to continue working were offered re-employment in 2023.”
The onus to hire older workers will not be on employers alone, she said, adding that MOM will support firms to hire older workers and help them update their skills.
Its Part-Time Re-employment Grant gives up to $125,000 for employers who provide these workers with part-time jobs after they reach retirement age, and can also be used to access career training for them. Its Senior Employment Credit scheme offsets wages for workers aged 60 and above.
Singapore, which will have one in four citizens aged 65 and above by 2030, has the third-highest employment rate for workers aged 65 to 69 among countries in the Organisation for Economic Cooperation and Development, Ms Gan said.
Workers in this age bracket are also joining the workforce in greater numbers, lifting the employment rate by 5 percentage points in the last five years to 48.3 per cent in 2023.
Among workers aged between 55 and 64 – the cohort next in line for retirement – the employment rate rose from 66.8 per cent to 70 per cent over the same period.
However, age biases make up about 24 per cent of 315 discrimination complaints filed with the Tripartite Alliance for Fair and Progressive Employment Practices and MOM between 2018 and 2022.
Protecting workers from age-related dismissals before their statutory retirement age is part of the ministry’s efforts to create fair and inclusive workplaces – one of three broad thrusts outlined by Dr Tan for his ministry this work year.
The two others are to boost the employability of local workers and the productivity of businesses, and to shore up retirement adequacy for vulnerable ones.
“Many have asked what keeps me awake at night,” Dr Tan said, adding that near-term headwinds, falling birth rates and an ageing population weigh on the labour market.
“If we do not succeed in sustaining our productivity in the next 10 years, my worry is that we will suffer real declines in economic growth.”
To coax more segments of the population into the workforce, MOM is taking a multi-pronged approach.
Two Bills expected to be passed in 2024 will deter discrimination based on traits such as age, race and disability, as well as protect platform workers.
Guidelines for a clear process on how workers and their bosses should work out flexible work arrangements will also be published in 2024.
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