SINGAPORE: In Parliament on Tuesday (March 3), Manpower Minister Tan See Leng mentioned that on July 1, 2026, the retirement age in Singapore can be raised to 64 years outdated, and the re-employment age to 69 years outdated.
At current, the retirement age is 63, and the re-employment age is 68.
“This can give our seniors extra flexibility and assurance, whereas enabling employers to retain skilled employees,” Dr Tan mentioned, which retains the city-state on observe to lift the retirement age to 65 and the re-employment age to 70 by 2030, which the federal government introduced in 2019.
In impact, by 2030, firms could be required to supply re-employment to their employees till they’re age 70.
Dr Tan additionally mentioned that this comes as Singaporeans reside longer and more healthy lives, resulting in a shift from “managing the pressures of ageing, to unlocking the advantages of profession longevity.”
The Minister famous that the way in which seniors work should even be reworked, by means of creating extra versatile and different paths for them to remain engaged and productive.
A extra built-in strategy to assist profession longevity is being studied by the Tripartite Workgroup on Senior Employment (TWG-SE). This contains permitting for employees to plan for later-stage profession transitions at an earlier time. It additionally helps employers design jobs and workplaces which can be age-friendly.
Dr Tan additionally mentioned that the federal government will proceed to strengthen insurance policies round retirement adequacy insurance policies to present seniors higher assurance.
Subsequent yr, the CPF contribution charges for senior employees can be elevated by 1.5 percentage-points for employees aged above 55 to 60, and 1 percentage-point for employees aged above 60 to 65. This additional helps employees who need to carry on working.
The CPF Transition Offset may also be prolonged for one more yr as a way to assist cushion half of the rise in employer CPF contributions.
The brand new retirement sums for cohorts past 2027 can be introduced later this yr, which is able to enable members to higher plan forward.
“With rising dwelling requirements, the brand new retirement sums will higher mirror the financial savings wanted to fulfill primary retirement wants sooner or later,” he mentioned, including that the federal government is dedicated to supporting seniors who’re dealing with difficulties in build up sufficient financial savings regardless of their greatest efforts. A CPF High-Up of as much as S$1,500 for eligible Singaporeans aged 50 and older with CPF balances under the prevailing Primary Retirement Sum can be mechanically credited this yr.
Minister of State for Manpower Gan Siow Huang first introduced that the retirement and re-employment ages could be raised in March 2024. /TISG
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