The government of Singapore updated the retirement age and re-employment age in 2024 to provide more security to its citizens. The retirement age is an important factor in the changes in the working market as it helps the ageing population to provide them with monetary stability. To know more about the updates on the retirement age and its impacts, kindly take a look at the article given below.
Retirement Age Change in Singapore
The Singapore government released the official news about the changes in its retirement and re-employment age policies. Although the changes will take place in 2026, the planning has been started since 2024. On April 4, 2024, the Ministry of Manpower Committee of Supply made changes in the retirement age and increased it to 64, and on the other hand, increased the re-employment age to 69. At present, the retirement age is 63 and the re-employment age is 68. It is expected to increase more in 2030. In 2030, the retirement age is anticipated to be 65 and the re-employment age to be 70.
These changes will bring improvement to the country by creating more possibilities for the senior citizens to take part for longer in the job sector. Moreover, it will provide extra help and security to the senior citizens. They will be able to work more and earn enough for a respectable life. Although the retirement age is low, one does not need to retire before they want to retire. Employers must offer re-employment to the senior citizens who are eligible until the legal re-employment age.
Eligibility
Not all people are eligible for this update. The eligibility criteria are as follows:
- The person should be employed.
- The individual must be a citizen or a permanent resident of Singapore.
- The person must be mentally and physically fit and not disabled.
- The person who wants to get re-employed must be eligible for it.
What are its impacts?
According to the statistics, by 2030, one in four citizens of Singapore will be over the age of 65. The average life expectancy of Singaporeans is approx. 85 years, which is high. That’s why most of the senior citizens want to keep working even after retirement. Seeing this, the government of Singapore has decided to increase the retirement age and re-employment age. It will cause many significant impacts on the country. Some of the impacts that can be caused are given below:
- Financial Stability: The more the senior citizens will work, the more they will be able to save for the future. The earnings will help them during their retirement period by providing them financial stability with a respectable life. They can cope with the inflation and the rise in the costs of living.
- Job Engagement: The senior citizens will be able to continue their jobs for more time, which will benefit both them and the company. The company will be benefitted by their experience and reliability. This will create a balanced and competitive work environment. Most senior citizens want to work after their retirement because they like to work. This update will create a significant impact on them.
- Improvement in Health: Research has shown that people who work more or for a longer time are healthier than compared to those who don’t work or do very little work. Senior citizens who will work even after their retirement age have more chances to be healthy and working.
- Economic Activity: If the citizens will work more, the economy will automatically grow. The update in retirement age and re-employment age will directly support economic growth.
- Financial Security: The more a person will work, the more he will get from the CPF savings or any other retirement funds. This extended earning period provides enhanced financial stability during retirement.
FAQs
When will the retirement age and re-employment age be updated officially?
The changes in retirement age and re-employment age will take place in 2026.
How do I know if I qualify for the re-employment?
To be eligible for re-employment, the individual must be a citizen or permanent resident of Singapore. He must fulfil the retirement age criteria and must have satisfactory job accomplishments.
What is the Part-Time Re-employment Grant (PTRG)?
The Part-Time Re-employment Grant (PTRG) is a type of grant that provides support to those employers who offer part-time work to elder workers. This way they can manage between work and spend quality time with their families.
What is the need to increase the retirement age?
The retirement age is increased to provide financial security to the senior citizens and help them with monetary stability.