Raising of Re-Employment & Retirement Age in Singapore (Plus CPF Contributions): Here’s What Singaporeans Need To Know!

For the year 2020, the average life expectancy at birth for residents in Singapore was 83.9 years.

This number has grown steadily in the past decade, growing in tandem with Singapore’s increasing economic progress.

And if healthcare technology continues to develop, this number will keep increasing in the years ahead.

To plan for our ageing population, the Tripartite Workgroup on Older Workers submitted a report to the Ministry of Manpower (MOM) in 2019.

Having accepted the recommendations, MOM amended the Retirement and Re-Employment Act to raise the maximum retirement and re-employment age.

This will empower older Singaporeans who are capable and willing to work to continue doing so.

Here’s what you need to know about the upcoming changes to retirement and re-employment age in Singapore.

TL;DR: Retirement Age in Singapore Guide

• The statutory retirement and re-employment age will be raised to 63 and 68 on 1 July 2022. 
• MOM has also amended the Retirement and Re-Employment Act to set the maximum possible statutory retirement and re-employment ages at 65 and 70 respectively.
• Eventually, the retirement age and re-employment age will be raised to 65 and 70 sometime in 2030.
• The Central Provident Fund contribution rates for senior workers will also be increased by 1.5% – 2%.
• But, there will NOT be any changes to the CPF withdrawal ages.

What Is the Retirement Age in Singapore (2022)?

As you can see from the table above, the Singapore Government will raise the retirement age in Singapore from 62 to 63 from 1 July 2022.

Note that this higher 2022 retirement age is only applicable to those born on or after 1 July 1960.

The previous time this happened was way back in 1999 when the retirement age was raised from 60 to 62.

Eventually, the retirement age will be raised to 65 sometime in 2030.

And if you were wondering, why 65 years of age?

Well, this is precisely the age when you can start receiving your monthly CPF Life payouts.

In addition, you need to know that your employers cannot terminate your employment based on your age until you hit the retirement age.

In other words, this progressive raising of the retirement age was implemented to enable senior workers to continue working if they are able and willing to.

Businesses will also benefit as there will be a larger pool of workers to hire.

What is the Re-employment Age in Singapore (2022)?

Currently, all employers are required to offer re-employment to eligible employees aged 62 to 67 to continue working in their company.

But, employers will have the flexibility to adjust the terms of the employment contract.

But from 1 July 2022, the re-employment age in Singapore will be raised from 67 to 68.

Note that the higher 2022 re-employment age is only applicable to those born on or after 1 July 1955.

What Are the CPF Contribution Rates For Senior Workers in Singapore (2022)?

In addition to the upcoming retirement age re-employment age adjustments, CPF contribution rates will also be raised gradually over the years for older workers in tandem with the ageing workforce.

This explains the upcoming increase in CPF contribution for workers aged 55 to 70, which will take effect from 1 Jan 2022 onwards.

For context, the upcoming increase in CPF contribution rates was implemented to help boost the retirement income of our seniors, as the increased contributions will be fully allocated to their CPF Special Accounts (SA).

Will There Be Any Changes to the CPF Withdrawal Age?

You’ll be happy to know that there will NOT be any changes to the CPF withdrawal ages.

When you turn 55, you can still withdraw these amounts from your CPF:

Got Any Retirement Questions?

If you are questions about retirement, you could always start a discussion in our Retirement group on Seedly, where our savvy community members will be on hand to give their thoughts!