Singapore to raise retirement, re-employment ages by 2026

SINGAPORE, SINGAPORE—Singapore is progressively raising the retirement and re-employment ages to address longer life expectancies and manpower needs. 

From 2026, employers can only ask staff to retire at 64, up from the current 63. By 2030, the retirement age will reach 65, while re-employment extends to 70.

“Over nine in 10 eligible senior workers who wished to continue were offered re-employment in 2023,” said Manpower Minister of State Gan Siow Huang. “To ensure the next increase goes smoothly, I encourage employers to start planning early.”

To support this transition, the Singapore government has introduced several initiatives aimed at encouraging employers to adapt to the new age limits by offering flexible working arrangements and career planning for older employees. 

Among these is the Part-time Re-employment Grant (PTRG), which offers up to S$125,000 to eligible employers who provide part-time positions and other flexible work options to their senior workers. 

A company can receive S$2,500 per resident senior worker aged 60 and above, with a maximum grant of S$125,000 per company.

Another measure is the Senior Employment Credit (SEC), providing wage offsets to employers who hire Singaporeans aged 60 and above with salaries up to S$4,000 a month. The wage support provided by SEC can go up to 7%, depending on the employee’s age.

Meanwhile, in the United States, older employees are increasingly delaying retirement to continue working. In fact, one in eight American retirees is likely to rejoin the workforce in 2024 due to high inflation.

A 2023 study also urged companies to prepare for an aging workforce as 95% of employers lack strategies to ensure an age-inclusive culture.