Singapore’s minimum retirement age will officially be 64 years old from 1 July, up from the current 63.
To that end, the Senior Employment Credit, which supports employers who hire senior workers, will be extended till December 2027, said Manpower Minister Tan See Leng on Tuesday (3 March).
Speaking in Parliament during the debate on the Ministry of Manpower’s (MOM’s) annual budget, Dr Tan noted that the re-employment age would also be raised to 69 on 1 July.
He pointed out that Singaporeans are leading longer and healthier lives, making it necessary for us to shift from managing the pressures of ageing to “unlocking the benefits of career longevity”.
Thus, raising the retirement and re-employment age “will give our seniors more flexibility and assurance, while enabling employers to retain experienced workers”, he added.
Source: MDDI Singapore on YouTube
The raising of the retirement age means that, from 1 July, workers who are Singaporeans and permanent residents (PRs) can be asked to retire only when they turn 64 years old.
Employers must also offer re-employment to eligible staff until the age of 69.
This move was first announced in 2024, with Dr Tan saying it would keep us on track to the eventual goal — a retirement age of 65 and a re-employment age of 70 by 2030.
This step-by-step increment was recommended by the Tripartite Workgroup on Older Workers in 2019, when the retirement age was still 62.
Dr Tan also noted that the Senior Employment Credit (SEC) would be extended until December 2027.
The SEC helps employers adjust to the higher retirement and re-employment ages by the Government providing them with wage offsets for their senior workers.
The payout amount will depend on the age group of the worker. Workers in the oldest group, aged 69 and above, will get up to 7% of wage support.
Source: Inland Revenue Authority of Singapore
The scheme will give seniors “more flexibility and assurance” to continue working if they wish to and enable employers to retain workers with valuable experience, MOM said.
Speaking after Dr Tan, Senior Minister of State for Manpower Koh Poh Koon said raising the retirement and re-employment ages has already made a difference.
More than 90% of employees who are eligible and wish to continue working are successfully offered re-employment, he revealed.
Labour force participation among Singapore residents in their 60s has also gone up over the last five years, from around 58% to nearly 60%.
For those in their 50s, labour force participation went up from 79% to 82%.
Singapore is thus ranked No. 5 for labour force participation by workers in their 60s among Organisation for Economic Co-operation and Development (OECD) countries — “among the leaders”, he noted.
Hence, the changes to the retirement age matter because they “do more than just set legal limits”, he said, adding:
They shape social norms around ageing and work, giving seniors confidence to stay on, and giving employers the clarity to plan for and retain experienced workers.
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Featured image by MS News.