Singapore’s retirement age is rising – But so are the benefits

The idea of early retirement may be losing its shine.

As people live longer, healthier lives, Singapore is shifting its approach to retirement, raising both the official retirement and re-employment ages to 65 and 70 respectively by 2030. While some view this as a delay to a well-deserved rest, policymakers and labour experts see it as a necessary evolution to meet the demands of an ageing population and dynamic economy.

Far from being a setback, the move is helping reshape workplaces and redefine what ageing well can look like for both workers and employers.

Financial security and purpose in later years

For older workers, the change offers more than an option to work for longer. It also provides added financial stability and continued purpose.

Currently, Singapore’s retirement and re-employment ages stand at 63 and 68. The phased increase over the next five years means workers will have an extra two years—entirely at their own discretion—to earn an income, build up their CPF savings, and remain socially engaged.

"Learning something new keeps the impetus, stimulation, and the incentive to look forward to, at every single milestone of our lives," said Manpower Minister Dr Tan See Leng, speaking at the launch of the Action Plan for Successful Ageing in 2023. He emphasised how work, social engagement and lifelong learning are crucial to healthy ageing.

Data from the Ministry of Manpower’s 2024 Labour Force Survey also reflects a growing trend: more seniors are choosing to stay employed. The employment rate of Singaporeans aged 60 to 64 has risen from 61.2 per cent in 2014 to 67.9 per cent in 2024.

NTUC also recognises that for workers to remain employed for longer, they need to ensure they remain relevant and updated in their skillsets.

To support this, NTUC provides training and job-matching support through platforms like NTUC LearningHub and NTUC’s e2i (Employment and Employability Institute), helping workers stay equipped with in-demand skills for the evolving job market.

A win for employers too

Businesses, too, are seeing the upside of a maturing workforce.

Older employees bring decades of experience, institutional knowledge, and a sense of commitment that can be hard to replace. Their presence in the workplace offers mentoring opportunities for younger staff, strengthens organisational culture, and can reduce staff turnover.

During the 2024 Committee of Supply debate, Minister of State for Manpower Gan Siow Huang shared that over 90 per cent of eligible seniors were re-employed in 2023, an indicator that companies are actively retaining older workers.

And for employers concerned about costs, the Government offers tangible support.

Under the Senior Employment Credit (SEC) scheme, employers can receive up to 7 per cent in wage offsets when hiring workers aged 60 and above who earn less than $4,000 per month. Since its launch in 2021, the scheme has disbursed over $450 million to nearly 100,000 employers—benefiting some 461,000 senior workers.

NTUC too can help employers ensure that their companies remain age inclusive.

To help employers better support and upskill their mature workers, NTUC partners with companies through its Company Training Committee (CTC) initiative.

These committees work closely with unions and management to identify training needs, redesign jobs, and implement workforce transformation plans tailored to each company.

To date, more than 3,000 CTCs have been formed across various sectors, ensuring that both workers and businesses are prepared for future challenges.

Through the CTC Grant, eligible companies can also receive funding support to implement these initiatives effectively.

Building a more inclusive workforce

Raising the retirement and re-employment ages is also driving a broader shift towards inclusive hiring practices and job redesign.

With schemes like the Part-time Re-employment Grant (PTRG), employers are encouraged to offer more flexible work arrangements, part-time options, and structured career planning for older employees. As of late 2023, around 6,300 employers had tapped into the PTRG, supporting nearly 50,000 senior workers.

These efforts not only make work more accessible for older employees—they also benefit businesses by boosting morale, retaining talent, and encouraging intergenerational collaboration.

A future-ready labour force

NTUC Deputy Secretary-General Desmond Tan recently took to Facebook to reiterate the need to better support our senior workforce.

“As our economy continues to transform, we must help our older workers and not leave them behind,” he wrote.

As the global workforce ages, Singapore’s proactive stance offers a model for resilience. Raising the retirement and re-employment ages isn’t just a demographic adjustment—it’s a strategic move to ensure the nation remains economically strong and socially cohesive.

The benefits are clear:

• For employees: an option to work longer, greater independence, and deeper purpose.
• For employers: retention of experience, continuity, and cost savings.
• For society: a skilled, inclusive, and future-ready workforce.

Retiring later may soon be the new norm. But more importantly, it reflects a national mindset shift—from seeing older workers as a burden to recognising them as an asset.

Navigating your career can get more precarious as you age. Get protected by becoming an NTUC member today!