Singapore is gradually moving on with its plan to guarantee a more secure, extended working life for the senior workforce. Invented under this national scheme, 2025 will see another scheduled increase in the official retirement and re-employment ages. It is a matter of importance that one understands these changes when planning on his/her future, whereas the employer will manage his/her workforces with this in mind.
What Will Be Changing in 2025?
The important change constitutes the setting of two important age benchmarks for an increase by 1 year. The increase will be from 63 years to 64 years for the statutory retirement age. At the same time, for the re-employment age, it will be from 68 to 69 years. Thus, the bigger picture is to help support senior citizens in having the option to work should they desire so while building stronger financial cushion for their later years.
Understanding Retirement Age vs. Re-employment
These two terms must be distinguished from one another. The retirement age signifies when an employer can ask an employee to retire. The re-employment age is a requirement for the employer to offer an eligible employee a continuation of employment in a job apt for him or her up to that higher age. In short, it means job security and income security for willing and able seniors.
Why is the Age Being Raised?
Such a policy emerged as a result of the country’s aging population and an upsurge in life expectancy over the years. The government wishes to offer an upper hand whereby older citizens may remain economically active, financially independent, and socially engaged. This helps businesses retain experienced yet valued talent in a competitive market.
Eligibility for Re-employment
Employees who want to be re-employed must fulfill certain criteria. Generally, they must have been with the present employer for a duration of at least three years before they reach the age of 63, be medically fit to continue employment, and have a work record that is satisfactory. The contract for re-employment shall be for a period of up to one year.
Summary of the 2025 Age Changes
| Policy Aspect | New Age from 1st July 2025 |
|---|---|
| Statutory Retirement Age | 64 years |
| Re-employment Age | 69 years |
| Key Impact for Employees | Right to work until 64; eligible employees can be re-employed until 69. |
Planning for the future
There is an extension for employees to build their savings in their Central Provident Fund (CPF) accounts. This is a great opportunity to have a discussion on future roles and career development with your employer. For everybody, the change also reinforces lifelong learning and skills upgrading as a means to remain relevant in the workforce. Staying attuned will enable you to reap the greatest benefits from these forward-thinking policies as you move along your career path securing a comfortable existence.