Singapore is planning to raise both the retirement age and re-employment age even though how and when to implement the policy are yet to be determined, according to Manpower Minister Josephine Teo.
She said that a workgroup comprising representatives from the Government, labor unions and the private sector has come to a consensus on the matter and it is a “significant milestone”.
She announced during her speech at the Committee of Supply 2019 that the Tripartite Workgroup on Older Workers is looking to raise the retirement and re-employment age of 62 and 67 respectively.
She said that raising the retirement age would further motivate workers and employers to invest in skills upgrading and job redesign for senior workers, whilst raising the re-employment age (REA) would offer the flexibility to reset jobs and help employers adjust with business uncertainties.
Teo assured that CPF payout eligibility age will remain at 65.
“In the next phase of its work, the Workgroup will build a tripartite consensus on (a) how far and how fast the RA and REA should be raised, and (b) the CPF contribution rates for older workers, balancing the need to help improve retirement adequacy and sustain employability for our older workers,” Teo said.