Singapore to Raise Retirement Age to 64 by 2026

In a move towards fostering inclusive and progressive workplaces, Singapore’s retirement age is set to rise to 64 years old in 2026, announced by Minister of Manpower Tan See Leng during the Committee of Supply debate in Parliament. This initiative aims to provide opportunities for seniors to continue contributing to the nation’s transformation journey.

Benefits for Workers

With the retirement age increment, workers seeking extended employment will enjoy statutory protection until the age of 64, offering them more flexibility and security in their career transitions. Additionally, the re-employment age will also increase to 69, ensuring that eligible staff have the option for continued employment or assistance as they approach retirement.

Employer Responsibilities

Companies are mandated to provide re-employment opportunities for eligible staff until the age of 69, or offer suitable employment assistance if necessary. This move encourages businesses to cultivate a supportive environment for senior workers and align their workforce strategies with the evolving demographic landscape.

Tripartite Consensus

The decision to raise the retirement and re-employment ages was reached through consensus among tripartite partners, including the Ministry of Manpower, unions, and employers. This collaborative effort reflects a commitment to addressing the needs of both workers and businesses in Singapore’s evolving economy.

Preparation for Transition

Minister of State for Manpower Gan Siow Huang emphasised the importance of early planning for the impending changes. Employers are urged to adjust their manpower strategies and upskilling initiatives to retain and leverage the experience of senior employees effectively. Initiatives such as the Part-Time Re-employment Grant (PTRG) and Senior Employment Credit (SEC) provide support to businesses in implementing flexible work arrangements and hiring senior talent.

Summary

As Singapore progresses towards a more age-inclusive workforce, the increase in retirement and re-employment ages underscores the government’s commitment to supporting seniors in their continued participation in the workforce. By preparing early and leveraging available resources, both employers and workers can navigate this transition effectively, ensuring a smooth and productive transition for all stakeholders. For expert guidance on navigating regulatory changes and optimsing workforce strategies, partner with Counto, your trusted accounting, tax, and corporate secretarial service provider.

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