Singapore to raise retirement and re-employment ages
From July next year, the retirement age will be raised to from 62 to 63 and the re-employment age from 67 to 68. By 2030, the retirement age is set to be raised to 65 and the re-employment age to be increased to 70.
The increases to the retirement and re-employment ages are in line with the recommendations made by the Tripartite Workgroup on Older Workers in 2019.
“Under this (statutory retirement and re-employment age) framework, employers cannot terminate an employee on grounds of age before the statutory retirement age. Workers have the assurance of continued employment up till the statutory re-employment age if they are able and wish to do so,” said manpower minister Tan See Leng in Parliament.
“At the same time, businesses have sufficient flexibility to adjust re-employment terms, enabling them to continue providing employment opportunities to our senior workers while remaining competitive.”
Businesses can opt to raise the retirement and re-employment ages ahead of the timeline, Dr Tan said, adding that the public sector has already taken the lead from July 1 this year.
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Meanwhile, the increase in CPF contribution rates for workers aged above 55 to 70 will be effective from January 1 next year. Workers aged above 55 to 70 will see a raise in total CPF contribution rates of up to 2 percentage points.
CPF withdrawal ages remain unchanged. At 55, people can still withdraw at least S$5,000 (US$3,706), and they can still start their CPF payouts from 65.