Asia’s richest country to raise retirement age to 65 a year ahead of timeline

Singapore will raise its retirement age to 65 from 64 and its re-employment age from 69 to 70 in January 2029, one year earlier than the original schedule of 2030.

The change, which follows the latest hike earlier this year, will mean that employers cannot dismiss employees on age grounds before they turn 65 and must offer re-employment to eligible employees until they reach 70, Channel News Asia reported.

"This gives senior workers greater assurance that they can continue working if they wish to," the Tripartite Workgroup on Senior Employment said in a media release for its report on Monday.

The workgroup includes representatives from the Ministry of Manpower, the National Trades Union Congress and the Singapore National Employers Federation.

The retirement age adjustment was among six measures suggested by the workgroup in its report, all of which have been accepted by the government.

Other recommendations include extending wage support for employers that re-employ older workers, increasing assistance for lower-wage senior workers and those who are not re-employed, and providing funding to help employers create and expand jobs with flexible workloads.

The latest recommendations come as Singapore, the richest country in Asia based on GDP per capita, has become a super-aged society.

A government report released in September showed that 21.4% of the city-state's citizens were aged 65 and above, exceeding the United Nations' 21% threshold for a super-aged society. The proportion had been 20.7% a year earlier and 13.7% a decade ago.

Meanwhile, the workgroup's report on Monday noted that though many older workers want to remain economically active beyond retirement age, labor force participation among Singapore residents drops more steeply from their late 50s.

The rate declines from 85.9% among those aged 50-54 to 68.4% for the 60-64 age group and 50.2% for those aged 65 to 69, the manpower ministry's survey data shows. All three figures are well below the average among the top five OECD economies.

The findings suggest that some workers exit the labor force earlier than they would like, the report said.

A study published last year by economists at the manpower ministry found that the earlier 2022 increase in the retirement and re-employment ages led to higher employment rates among the affected age groups.

Minister of State for Manpower Dinesh Vasu Dash said at a Monday press conference that the workgroup's recommendations are aimed at helping seniors find meaningful and sustainable employment in more flexible ways.

"For some seniors, this may mean continuing in the same job for longer. For others, it may mean moving into a different role, working at a different pace or adjusting work around changing personal circumstances," he said, as quoted by The Straits Times.

"What matters is that seniors who wish to continue working have meaningful options to do so."

Further details on implementing the recommendations will be announced in the first half of 2027, according to the media release.