SG to increase the retirement age and CPF contributions

SINGAPORE: Singaporean senior citizens may now continue working with the raise in retirement and re-employment ages that the law will implement in July 2022, based on the recommendations by the Tripartite Workgroup on Older Workers.

Under a new amendment to the Retirement and Re-Employment Act, and the Central Provident Fund Act, the retirement age is set to 63 from the current 62. The re-employment age is from 67 to 68. The retirement age is scheduled to be raised to 65 and the re-employment age, to 70 in 2030.

Manpower minister Tan See Leng said, “Under this framework, employers cannot terminate an employee on (the) grounds of age before the statutory retirement age. Workers have the assurance of continued employment up till the statutory re-employment age if they are able and wish to do so.”

“At the same time, businesses have sufficient flexibility to adjust re-employment terms, enabling them to continue providing employment opportunities to our senior workers while remaining competitive,” he added.

According to Dr Tan, the public sector started applying the scheme in July 2021 as businesses can go ahead of the timeline.

In the private sector, one of the firsts to adopt the law is United Overseas Bank. Next year, it will offer opportunities in customer service, process and systems training, operations, and project advisory to its retired employees, with healthcare benefits and insurance coverage for those who will be hired. But a pilot program is already ongoing in some of its branches. UOB noted that this move reflects the rise in the employment rate among individuals aged 65 and above in 2020.

Meanwhile, effective January 1, 2022, workers aged 55 to 70 will have an increased contribution of up to two percentage points to the Central Provident Fund. Withdrawal ages stay the same. Workers at age 55 can still withdraw at least SGD5,000 (USD4,000), and they can still begin CPF payouts from age 65.

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