Image: Unsplash/Nguyen Thu Hoai
In case you missed it, come 1st July 2022, Singapore’s retirement age will be increased from 62 to 63. Correspondingly, the re-employment age will be increased from 67 to 68. Employees who were hired at age 55 and above will qualify for re-employment if they have worked for the same employer for at least two years.
The measures are meant to support senior workers, availing them the option to continue working if they wish to. Senior workers returning to the workforce past their retirement age no doubt augments the existing pool of workers for businesses.
These measures were initially announced in November 2021, by Manpower Minister Dr Tan See Leng. They are part of the amendments to the Retirement and Re-employment Act, which establishes the maximum possible statutory retirement and re-employment ages at 65 and 70 respectively. The Government has accepted the Tripartite Workgroup’s recommendations on Older Workers, and by 2030, the retirement and re-employment ages will be raised to 65 and 70 respectively. Subsequent raises will be made subject to the tripartite partners’ agreement.
Harh?! CPF withdrawal age also increase ah?!
Don’t spread fake news! – Dr Tan has emphasised in his speech that NO changes will be made to CPF withdrawal ages. The current pay-out eligibility age of 65 provides access to retirement income and gives a reasonable runway for CPF members to continue building up savings for retirement.
Singaporeans are living longer in terms of life expectancy; our policies must move in tandem to ensure no one falls through the cracks. If CPF members are willing and able to, they can choose to defer their pay-outs if they are still working, so when the time comes when they need it, then they will receive higher monthly pay outs (because their nest egg has accumulated and grown!).
Really, raising the retirement and re-employment ages provides the flexibility for older workers who are willing and able to work longer – it does not compel them to do so. Honestly, those who do not wish to continue working need not do so and can enjoy their retirement!
A young Singaporean concerned about issues workers face. As humans, we spend a third of our lives sleeping and recharging, and another third for our personal life, and the last third at work (based on a 24-hr distribution). That’s why we should pay attention to issues surrounding work.