In tandem, the re-employment age will also be increased from 67 to 68.
Singapore's Ministry of Manpower (MOM) will be commencing its measures to support senior workers starting 1 July 2022.
As part of the effort, the retirement age will be increased from 62 to 63, while the re-employment age will be increased from 67 to 68. Employees hired at age 55 and above will qualify for re-employment if they have worked for the same employer for at least two years.
These measures will enable more senior workers to continue working if they wish to, and provide a larger pool of workers for businesses, MOM said.
Initially announced on 2 November 2021 in a speech by Minister for Manpower Dr Tan See Leng, these raises are part of amendments to the Retirement and Re-employment Act, to establish the maximum possible statutory retirement and re-employment ages at 65 and 70. As such, the Government accepted the Tripartite Workgroup on Older Workers’ recommendations to raise the retirement and re-employment ages to 65 and 70 respectively by 2030.
While the first shifts of the retirement age to 63 and the re-employment age to 68 will take effect from 1 July 2022, the timing of subsequent shifts will be subject to the tripartite partners’ agreement.
It should be noted that with the above shifts, there will be no changes made to CPF withdrawal ages. Dr Tan stressed in his November 2021 speech: "The current payout eligibility age of 65 strikes a balance between timely access to retirement income, and provides sufficient runway for members to build up savings for retirement, especially as Singaporeans are expected to live longer.
"Members continue to have the option to defer payouts for higher monthly payouts."
Lead image / Singapore Ministry of Manpower Facebook