How Should Companies Plan for Rising Retirement Ages?
Businesses should review job designs, establish clear re-employment policies, invest in training, ensure ergonomic workspaces, and prepare long-term workforce plans.
What is the Current Retirement Age in Singapore?
Singapore sets the official minimum retirement age at 63. The law prohibits employers from retiring any employee before this age. Plans are in place to increase the retirement age to 64 by 2026 and 65 by 2030. These changes will also bring a rise in the re-employment age.
Every employer in Singapore needs to know the retirement and re-employment rules. These policies shape workforce planning, contract structuring, role redesign, and long-term manpower strategies. Employees can feel sure that they can keep working up to a legally protected age—and beyond, if they meet the right criteria.
This comprehensive guide sheds light on Singapore’s retirement policies, explains what employers need to do to comply, and shows how companies can help employees nearing retirement while keeping productivity high and being fair to everyone.
What Is the Retirement Age in Singapore?
Current Official Retirement Age
The law sets the retirement age at 63, and companies can’t fire or retire employee under this age just because they’re old. This rule protects older employees and makes sure they can keep working until they reach the legal retirement age at least.
Upcoming Retirement & Re-Employment Age Changes
Singapore plans to raise both retirement and re-employment ages step by step:
By 2026
- Retirement age: 64
- Re-employment age: 69
By 2030
- Retirement age: 65
- Re-employment age: 70
These changes back Singapore’s long-term population plan: they let older employee stay active and help companies keep skilled staff when employees are hard to find.
Retirement Age vs Re-Employment Age: Main Differences
Retirement Age
The lowest age when companies can ask a employees to retire (now 63). Employers can’t make someone retire or fire them just because of their age before this point.
Re-Employment Age
Companies must give qualified employees chances to keep working until they turn 68, and this will go up to 70 by 2030.
You can offer jobs again through:
- Longer contracts (one-year terms you can renew)
- Jobs with new designs
- Work setups that fit what the business and employees need
This way older employees who want to keep working don’t get shut out.
What Employers Must Do Under Singapore’s Retirement & Re-Employment Act (RRA)
Every employer has to follow the Retirement and Re-employment Act (RRA), which spells out required protections and duties.
1. No Forcing People to Retire Before the Law Says
Employers can’t fire employees just because of their age before they turn 63 (64 by 2026).
2. Give Qualified Employees a Chance to Work Again
Employers need to evaluate re-employment eligibility in a fair way and provide appropriate positions unless they have a good reason not to such as: • No suitable job openings after real efforts • Recorded issues with work or behavior • Inability to do the job even with adjustments
If re-employment isn’t an option, employers must give an Employment Assistance Payment (EAP) as outlined in Tripartite Guidelines.
3. Create Clear Written Re-Employment Policies
Employers should keep open internal guidelines that cover:
- How they assess employees
- Terms of contracts
- Pay changes (if any happen)
- How they redesign jobs
- Ways to handle disagreements
Clear rules cut down on mix-ups and help fair job practices.
4. Follow Fair Employment Standards
Employers should steer clear of biased choices and deal with age-related issues in a uniform way. Good record-keeping and open talks help follow rules and stop arguments.
How Retirement Age Affects Workforce Planning
Handling an Older Workforce
As employees stay on the job longer, companies need to look again at:
- Physical job needs
- Workplace setup for comfort
- Health and safety rules
- Flexible work options
- Suitable roles for older staff
Taking action keeps people working well and cuts down on injury risks.
Mixing Senior Know-How With Young Energy
Teams with different ages bring varied views. Businesses gain by managing:
- Passing on knowledge
- Setting up mentoring
- Planning for succession
- Paths to grow skills
Long-time staff add steadiness, while new hires bring fresh thinking.
Retention Strategies for Mature Employees
To keep older employees engaged:
- Change job scopes when needed
- Give recognition and appreciation programs
- Allow flexible options like part-time work or shorter weeks
- Set up consulting or mentoring roles
Keeping mature employees has a positive effect on organizational stability and cuts down on turnover expenses.
Best Ways to Support Employees Nearing Retirement
1. Give Chances to Upskill and Train
Learning never stops, no matter where you are in your career. Training helps older employees:
- Get used to new tech
- Switch to less physical jobs
- Take on mentoring duties
- Stay in the loop with rule or industry shifts
This support makes the workforce stronger in the long run.
2. Allow Flexible Work Options (FWO)
Choices like hybrid schedules shorter weeks, or less work help keep people engaged while fitting their energy levels and personal needs. These flexible options often make employees want to keep working longer.
3. Help with Money and Retirement Planning
Employees nearing retirement get help understanding:
- CPF LIFE payments
- Retirement savings
- Health care plans
- Budget making and money management
- Estate planning ideas
Classes, outside advice sessions, or HR-led talks can give employees the power to make smart choices.
To Wrap Up
Singapore’s changing retirement scene stresses experience, including everyone, and lasting solutions. For companies, following the rules is just the start. The bigger aim is to create a place where employees can add value at different points in their lives.
By getting a grip on retirement rules thinking ahead, and giving targeted help, companies can handle transitions without hiccups while building trust and boosting their image as employers. As people work longer, businesses that adjust will be in a better position to keep skilled employees, stay productive, and ensure a steady workforce.
Frequently Asked Questions:
What is the retirement age in Singapore?
Singapore’s official retirement age is 63. It’s set to increase to 64 by 2026 and 65 by 2030. Employers can’t force employees to retire before this legal age.
What is the re-employment age in Singapore?
The current top age for re-employment stands at 68. This will go up to 69 in 2026 and 70 by 2030 for employees who want to keep working and meet the requirements.
Do employers have to offer re-employment?
Yes. The Retirement and Re-employment Act says employers must offer re-employment to employees who qualify, unless they have good reasons not to and these reasons are written down.
Can an employer pay less after re-employment?
Yes, pay changes can happen if the job changes or the business needs it, but they need to be fair, make sense, and the employer must tell the employee.
What happens if a company can’t offer re-employment?
Companies need to give their employees an Employment Assistance Payment (EAP) as per Tripartite rules to help them look for new jobs or change careers.
