July 1, 2026, Singapore will raise the retirement age for workers from 63 to 64. The re-employment age will also increase accordingly from 68 to 69. This means that employees who choose to work longer will have their legal protection extended until age 64, and employers will be obliged to offer suitable employees the opportunity to re-employ up to age 69 and modify the terms and conditions if necessary.
Singapore’s new retirement age change in 2024 It will not affect CPF payment and withdrawal ages. The deadline was revealed by Minister of State for Manpower Ngan Siu Hoang during a debate in the ministry’s Budget Committee in Parliament. The latest increase in the retirement and re-employment age limits was made to 2022.
Singapore’s new retirement age change in 2024
- Singapore’s retirement age will be increased by one year from 2026, so that employees can only apply for retirement when they reach 64 years of age. This is part of a plan to gradually raise Singapore’s retirement age to 65 years by 2030. In Parliament in March, Minister of State for Manpower Gan Siu Hoang announced that the re-employment age will likewise be raised to 69 years in 2026. Companies will therefore be required to give re-employment to employees until they reach 69 years of age. The minimum age for re-application will be raised to 70 years by 2030. Re-employment is available to Singapore citizens and permanent residents who meet the employment requirements and are medically deemed fit to re-employ.
- Employees who joined the company after the age of 55 are also eligible if they have worked in their current position for at least two years before the retirement age. Re-employment contracts must have a minimum contract period of one year and be renewed annually. In 2019, it was announced that employees may be asked to retire at age 62 as part of plans to raise the retirement and re-employment ages.
Changes from the new retirement age
of Singapore’s new retirement age of 63 will remain unchanged until 2024. The government has announced that it will increase the retirement age in future, including raising the minimum retirement age from 63 to 64 in July 2026. The new retirement age rules will allow companies to offer flexible work schedules to older employees.
Thus, the retirement age will rise to 70 by 2030 and to 69 by 2026. Even if the retirement age does not increase in 2024, the expected increase will have some impact.
For Employers
- Better talent optionsThis is great news for industries suffering from skills shortages, as businesses will have access to more skilled professionals.
- Change the way you work: Organisations may need to adjust their procedures to accommodate senior staff. This may include dealing with increased salary and healthcare costs, and offering more flexible working arrangements.
For employees
- More Earning Potential: People who stay in employment longer tend to have more savings for retirement, which increases stability.
- More choice and flexibilityWorkers are free to continue working if they wish, for personal fulfillment, additional income, or social engagement.
- Future tasksNot all senior employees can work long hours, which can create some challenges at work.
Financial impact: Are the amounts changing?
- of Central Provident Fund (CPF) Withdrawal Limits According to official notifications, the availability of these pensions has not yet changed. To keep up with longer working lifespans and changing economic conditions, the government will likely continue to review and modify these guidelines. The mandatory savings plan for social security and retirement benefits is CPF. The minimum amount you must hold in CPF for retirement and the minimum age at which you can withdraw money will remain unchanged.
- The Enhanced Retirement Sum (ERS) cap will increase in Budget 2024, which is good news. This means you can take advantage of programs such as the Retirement Sum Topping-Up Scheme to boost your retirement savings. This could increase your CPF LIFE payments, which provide you with an income in retirement. No matter when you plan to retire, it’s important to plan for your future. Everyone’s retirement needs are different, so consider your desired standard of living, expected expenses and lifestyle.
Why did we change it?
- Singaporeans are ageing and in better health. Employment laws need to be updated to reflect this demographic trend, to support older workers and give them the option to work longer if they wish.
- To ensure sustainability as its population ages, Singapore wants to maintain economic vitality and ease financial strain on its social security system by encouraging older people to stay in the workforce.
My take on this change
Singapore’s retirement age change This is the result of a proactive strategy to address demographic challenges and maintain economic viability. These developments, while likely to pose some challenges, will bring significant benefits to both employers and employees. By embracing flexibility and adaptability, Singapore can successfully manage this demographic change to the benefit of all involved.
The CPF scheme guarantees retirement benefits for all and also encourages government contributions to personal savings. Singapore aims to ensure an adequate labour force by meeting the demands of an ageing society. This allows individuals who choose to work to continue doing so, improving their retirement savings and overall financial stability.
Maeve Celestine is one of the principal writers at the Fort Hunt Herald. She is a graduate of Monash University and works as a freelancer for the media company.
