Singapore will increase its retirement and re-employment ages starting in 2026, as the government unveiled at the Committee of Supply debate at the Ministry of Manpower on March 4, 2024. This is part of the strategy by the government to mitigate the challenges associated with an aging population and boost employment opportunities for elderly workers.
New Retirement and Re-employment Ages
The retirement age will be increased from 63 to 64 and the re-employment age from 68 to 69. By 2030, these thresholds are further increased to 65 and 70, respectively. This phased approach is designed to give businesses and individuals time to adjust accordingly, making the transition easier.
Table of Changes
| Year | Retirement Age | Re-employment Age |
| Current | 63 | 68 |
| 2026 | 64 | 69 |
| 2030 | 65 | 70 |
Reason for Change
1. Aging Population
As Singapore’s population rapidly ages, the government emphasizes policies to keep older workers at work for longer periods.
2. Economic Benefits
Experience, stability, and mentoring are all that older workers bring to a firm. The extension of employment can help alleviate manpower shortages and increase productivity.
3. Financial Security of the Elderly
The old have the opportunity to achieve better financial security, not depending much on personal savings or social security.
Government Incentives for Employers
To encourage businesses to retain more mature workers, Singapore provided several financial incentives:
PTRG
Supports older workers with flexible work schemes for workers 60 and above.
Amount: Company: up to S$125,000
Elderly Support: at S$2,500 per eligible worker
Senior Employment Credit
SEC encourages the hiring of workers at 60 years old through wage offsets of 7%, up to S$4,000 monthly for the monthly salary.
These changes ensure that employees in Singapore are more integrative and flexible. Their most important advantages are;
1. Economic Resilience: Utilizing aging employees’ skills ensures diversification and strength in an economy.
2. Working Culture: Intergenerational collaboration enhances the firm’s culture.
3. Social Security: Seniors achieve better financial security with a better quality of life.
Raising retirement and age for re-employment plus encouraging employers to do that are steps Singapore is working towards adapting to its changed demographics while maintaining a stable and productive workforce.
