Not ready to retire? Employees in Singapore have the choice to work

From 2026, employers in Singapore can only ask employees to retire when they turn 64, up from the current retirement age of 63.

This is part of a move by the Singapore government to progressively increase the retirement age to 65 by 2030. The re-employment age will also be raised to 69 by 2026, and to 70 by 2030. Employers must offer employees the option of re-employment until they reach 69 years, with the re-employment age increased to 70 by 2023.

Singapore citizens and permanent residents who have satisfactory work performance and are medically fit to continue working are eligible for re-employment. Employees who have only joined the company after turning 55 must also have served their current employer for at least two years. The re-employment contract offered by employers should last for at least one year and be renewable every year, reported CNA.

The planned increase in retirement and re-employment ages was announced in 2019, when employees could be asked to retire at 62. The first increase took place in July 2022.

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“Over nine in 10 senior employees who were eligible and wished to continue working were offered re-employment in 2023. To ensure that the next increase is implemented just as smoothly, I encourage employers to start planning early,” said Gan Siow Huang, Minister of State for Manpower. Some companies may need to adjust their manpower and upskilling plans to retain senior employees, she added.

MOM has attributed the changes to a longer life expectancy in general, as well as to address the lack of manpower.