Changes to Singapore's Retirement and Re-Employment Age from 1 July 2026

Singapore's retirement age will increase from 63 to 64 on July 1, 2026, according to a statement made by Minister for Manpower Tan See Leng on March 4, 2024. In a similar vein, the re-employment age will rise from 68 to 69. In the long run, the government intends to increase the re-employment age to 70 and the retirement age to 65 by 2030.

Rationale Behind Raising Retirement and Re-employment Ages

This adjustment is a component of the government's larger plan to deal with the issues brought on by the nation's aging workforce while guaranteeing that senior citizens can maintain their economic contributions and financial security as they age.

Singapore’s population is aging rapidly; by 2030, there will be twice as many people 65 and older. The demands on healthcare, social welfare, and economic output are all significantly impacted by this demographic shift. In order to solve these problems, the government wants to make sure that older people have the resources and opportunities to continue working.

By increasing both the retirement and re-employment ages, Singapore is expanding the options for older workers to stay employed and continue contributing their skills and experience by raising the retirement and reemployment ages. This adjustment is also in line with a worldwide trend, as many nations are increasing retirement ages in response to comparable population shifts.

Key Benefits Of This Change

Financial Security for Older Workers

Due to increasing life expectancies and rising living expenses, many older workers experience financial instability during their retirement years. Older employees have the opportunity to continue generating income for a longer period of time thanks to the increase in retirement and reemployment ages, which helps them accumulate retirement funds and achieve greater financial security in their later years.

Utilising the Experience of Older Workers

An abundance of information and experience is brought to the workforce by older individuals. Employers may benefit from their abilities, expertise, and guidance by allowing them to remain in their jobs for longer periods of time. This is particularly beneficial in fields where leadership and extensive expertise are essential.

Reducing Pressure on Public Resources

Public resources, especially those related to healthcare and social services, are severely strained by an aging population. Singapore can lessen the strain on its public welfare system by retaining older workers in the workforce for longer. This is because older people continue to contribute to the economy rather than depending entirely on government assistance.

Promoting Better Health and Well-Being

Research indicates that continuing to work can benefit one's physical and mental well-being. When older people stay in the workforce, they frequently feel less alone, have a stronger sense of purpose, and maintain social ties. This can therefore encourage a healthier aging population and lower the need for healthcare services.

Impact on Employers 

Employers will need to modify workplace practices in response to the rising retirement and re-employment ages. They will need to ensure that their workplaces are welcoming and accommodating to an aging population by giving senior employees options for career advancement, flexibility, and training. Additionally, companies may also need to think about making accommodations for staff members who have age-related health problems.

In order to determine whether their employee benefits insurance is fulfilling the requirements of their senior employees, employers should review their existing coverages. This can entail delivering more comprehensive dental or optical care, increasing coverage for chronic diseases, or implementing wellness initiatives targeted at senior employees.

Employee benefits with eazy

To effectively support an aging workforce, employers should ensure that their group health insurance plans are adequately addressing the needs of older employees. If you're searching for the right coverage, consider working with an experienced broker like eazy. Our team is prepared to help you ensure that your policies deliver the necessary care and support for your employees.

You can visit our website for additional information and check out our Employee Benefits insurance aggregator to customize and compare your Employee Benefits insurance options. Alternatively, contact us today for personalised advice tailored to your business’s specific needs and we will be happy to assist you.