The new retirement age and conditions have been announced. The adjustments in retirement and re-employment ages enable older employees to stay employed for longer, granting them additional prospects. This piece provides a concise summary of the imminent modifications to the retirement age in Singapore.
Retirement Age Changes 2024
Many citizens have expressed a desire to keep working, and in response, the government has decided to raise the retirement and re-employment ages. Currently, 90% of senior workers remain in the workforce, benefiting from various re-employment opportunities.
However, along with these advantages come certain challenges. For instance, the generation gap between younger and older workers could influence workplace dynamics. Differences in mindsets, backgrounds, and the pace of technological advancements could become more pronounced. To safeguard the interests of senior workers, the government plans to implement Workplace Fairness Legislation to help address these dynamics.
Singapore’s New Retirement Age
Considering the demand for senior employees to continue working, the government has decided to raise the retirement age further. In 2024, the retirement age was increased to 63, and the re-employment age to 68. Recently, the Singapore Government announced that by 2026, the retirement age will increase to 64, with the re-employment age rising to 69.
To ensure a smooth transition, the government focuses on four key areas: government support, life and healthy year expectancy, timing and pace, and re-employment terms. These factors will guide the gradual implementation of the new age thresholds, with a target to retire at 65 and re-employment at 70 by 2030. This approach aims to provide financial security for seniors while allowing them to continue contributing to the economy.
Age Conditions
Here are the key conditions related to the new retirement age:
- Senior employees must hold Singaporean citizenship.
- Workers must have been employed before the age of 55 and should have completed at least two years of service before turning 63.
- Their performance, as assessed by the employer, must be satisfactory.
- Senior workers should be medically fit to continue working.
The Retirement and Re-employment Act (RRA) specifies that the earliest age for retirement is 63. Employers are not allowed to terminate an employee before they reach this retirement age.
Singapore Government Support Grants
The Singapore Government has announced changes to the retirement and re-employment ages, which will rise to 64 and 69 in 2026, respectively, and to 65 and 70 by 2030. Additionally, several support grants are available for employers:
- Part-time Re-Employment Grant (PTRG) – Employers offering part-time re-employment, structured career planning, and flexible work options to senior workers can receive up to S$125,000. Companies can get S$2,500 per eligible senior worker (aged 60 or older), capped at S$125,000 per company.
- Senior Employment Credit (SEC) – Wage offsets are provided to eligible employers who hire senior workers (aged 60 and above) earning up to S$4,000 per month. Wage support ranges from 7% to 8% based on the employee’s age.
- Healthcare Benefits – Employers are encouraged to review and restructure healthcare benefits, including flexible benefits and MediSave contributions, which can be used to pay for MediShield Life or Integrated Shield Plan premiums.
Other government support programs are also available. For more details, visit the official government website.
All We Know
In 2026, the retirement and re-employment ages will increase, allowing senior workers to contribute to the economy for additional years. However, certain groups will be excluded from these changes, including:
- Public officers in Police, Prison, Narcotics, Civil Defence, and Corrupt Practices Investigation services.
- Singapore Armed Forces personnel.
- Cabin crew on commercial airlines.
- Employees working 20 hours or less per week.
- Workers who were first hired after age 55 and had less than two years of service with the company.
Additional exemptions exist. For the latest information, visit the official Singapore Government website and browse this webpage for more articles on Retirement Age Changes.
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