By 2030, Singapore’s retirement and re-employment ages will be tweaked upwards to 65 and 70 respectively.
You may be wondering if you’ll ever retire in the future, since the minimum age keeps going up.
But here’s why it may not be a bad thing.
What is retirement age?
The current minimum retirement age in Singapore is 62, according to the Retirement and Re-employment Act.
This means that employers cannot dismiss an employee for being “too old”.
According to the Act, the employer could be fined up to $5,000 or jailed up to six months if convicted of breaching the law.
What is re-employment age?
Currently, employers must offer re-employment to eligible workers when they turn 62, according to the Ministry of Manpower.
If it is not possible to continue working at the same organisation, the employer must transfer the re-employment obligation to another company or offer an Employment Assistance Payment – a one-off payment equivalent to 3.5 months’ salary, subject to a minimum of $5,500 and maximum of $13,000.
It means those who want to continue working will be able to stay hired.
Why does this matter?
Contrary to the belief that the changes will make Singaporeans “work till you die” and be unable to enjoy any kind of retirement, the changes may actually benefit you.
If you’re younger than the minimum retirement age, your employer will not be allowed to offer you the option of retiring, i.e. encouraging you to leave. This is good news if you have plans to continue working – you’ll be safe from “the talk” for a few more years.
The same goes for the new re-employment age. If you would like to stay on in the workforce for longer, the new regulations will help you.
It isn’t about having to work till one is on their death bed. Rather, it’s providing more options and protecting those who need or want to work for longer.
If you’re able to retire earlier than the minimum age, there is no law governing against it. Go for it!