Employers urged to plan ahead for upcoming increase
Singapore is raising anew the retirement and re-employment ages in the workforce in 2026, according to the Ministry of Manpower (MOM) on Monday.
The retirement age will be increased from 63 to 64, while the re-employment age will be hiked from 68 to 69.
The increase brings the government closer to its goal of raising the retirement and re-employment ages to 65 and 70 years old, respectively, by 2030.
Preparing for change in retirement age
Minister of State for Manpower Gan Siow Huang said they announced the increase early so employers can plan for the coming increase early.
"Some will need to adjust their manpower and upskilling plans to retain their senior workers," Gan said at the Committee of Supply. "Come 2026, employers who have prepared well will be better placed to tap on their senior workforce to meet their business needs."
Singapore's previous adjustment of retirement and re-employment ages was back in 2022, when they were hiked to the current levels.
Nearly 90% of older Singaporeans have previously said they support a retirement age of 63 and beyond, while another 80% support a re-employment age of 68 years and higher.
Preparing for retirement, re-employment age hike
Gan stressed that the government would provide support to employers who want to improve their HR capabilities to manage an ageing workforce.
Among the ongoing measures implemented by the government include the recently expanded Part-Time Re-employment Grant (PTRG), which supports employers offering part-time re-employment and flexible work arrangements to senior employees.
"Employers can enjoy up to $125,000 in grant support under the scheme," Gan said.
The scheme also supports employers in implementing structured career planning (SCP), according to the official.
"SCP is a process where employers systematically engage their employees and plan out their training and career development goals to align with business needs," Gan said.
"This is particularly useful for employees who are approaching retirement. Through the PTRG, employers can access free training to learn how to conduct SCP with their employees."
Employers can also receive support through the Senior Employment Credit (SEC), which provides wage offsets to employers hiring Singaporeans aged 60 and above.
SNEF welcomes age hike
Meanwhile, the Singapore National Employers Federation (SNEF) said it supports the phased increase of the retirement age (RE) and re-employment age (REA).
"The gradual increment of RA and REA will allow employers to make adjustments to their manpower and upskilling plans ahead of implementation and support senior workers who are able and wish to continue working," the SNEF said in a statement.
"Employers are also able to harness the skills and experience of senior workers amidst a tight labour market."
It also called for an extension of the SEC beyond 2025 and an increase in the salary cap above $4,000 to help employers adjust to the higher RA and REA.
"To develop age-friendly workplaces, SNEF is currently supporting employers in redesigning jobs and roles through the Job Redesign under Productivity Solutions Grant," the SNEF said.
