Get the latest facts and updates regarding the Singapore Retirement Age Changes 2024: New Retirement Age and Conditions Announced. The rise in retirement and re-employment ages creates more opportunities for senior individuals to work for longer period in the labour market. This article will briefly describe the changes in the Singapore Retirement Age.
Singapore Retirement Age Changes 2024
Most citizens expressed the desire to work in the workforce, and considering their demands, the government decided to hike the retirement and re-employment age. 90% of working senior individuals continued in the workforce and were offered various re-employment opportunities.
However, it might cause certain inevitable consequences along with benefits. For instance, a generation gap between young and senior employees resulted in workforce dynamics. The differences in people’s mindsets and backgrounds and the rapidly changing technology will be magnified. To protect Senior workers’ welfare, the government plans to enforce Workplace Fairness Legislation through which workplace dynamics might be prohibited.
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Singapore New Retirement Age
By considering the demand for senior workers to remain in the workplace for longer, the government announced its plan to hike the retirement age of senior workers. The previous year, the retirement age was elevated to 63, and the re-employment age was elevated to 68. Recently, the Singapore Government revealed that it will be going to elevate the retirement age of senior workers to 64 and the re-employment age to 69 in the year 2026.
For the course of action, the government considered four key measures that are government support, life and healthy year expectancy, timing and pace, and terms of re-employment. The government considered all these key factors so that the age thresholds will be implemented gradually until and unless the government meet the target ages by 2030. Through this, senior individuals will be able to support themselves financially as well as can contribute to the country’s economy.
Singapore New Retirement Age Conditions
This segment will discuss the new retirement age conditions of the Singapore Government, which are breakdown as follows:
- Senior individuals must possess certified citizenship in Singapore.
- The employees must join the employer before 55 and provide service to their employers for a minimum of 2 years prior to turning 63.
- The assessment done by an employer must have resulted in satisfactory work performance.
- Senior workers must be medically fit in order to continue working.
As per the Retirement and Re-employment Act (RRA), the employee must provide the service for 63 years as it is the minimum retirement age. No employee will be dismissed by the employer prior to retirement age.
Singapore Government Support Grants
The Singapore Government announced a change in the retirement and re-employment ages to 64 and 69, respectively, in the year 2026. Furthermore, the government decided to hike the retirement age to 65 and the re-employment age to 70 by 2030. In addition, there are various Support Grants provided by the government, which are as follows:
- Part-time Re-Employment Grant (PTRG) – Employers who offer part-time re-employment, structured career planning, and flexible working arrangements to senior workers are provided up to S$125,000. The eligible company will receive S$2,500 PTRG per resident senior worker aged 60 or above. However, the grant is capped at S$125,000 per company.
- Senior Employment Credit (SEC) – The wage offsets are provided to eligible employers who employ senior workers of 60 or above with a monthly earning of S$4,000. Based on the employee’s age, the wage support ranges from 7 to 8%.
- Healthcare benefits – An employer must consider restructuring healthcare benefits. Additionally, the employers must provide flexible benefits and MediSave contributions. These might be used for the payment of MediShield Life or Integrated Shield Plan premiums of an employee.
Apart from these, there are certain other supports provided by the government. To get further details regarding support grants and payments, the individuals must visit the official website of the government.
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All We Know
The retirement and re-employment age of senior workers will be hiked in 2026. The individuals can contribute to the country’s economy for a few more years. However, certain seniors are not entitled to the changes, which are as follows:
- Public officers in Police, Prison, Narcotics, Civil Defence, and Corrupt Practices Investigation (Junior and Senior) Services.
- Singapore Armed Forces Personnel.
- Cabin Crew onboard commercial aircraft.
- Employees with working hours of 20 hours per week or less.
- Employees who served less than 2 years in the company and after 55 were employed first.
Certain other employees, too, are exempted from re-employment age changes. Viewers are requested to stay updated on the official web page of the Singapore Government for the latest information. Furthermore, keep browsing this website to read the articles related to Retirement Age Changes.
