Update by September on raising retirement and re-employment ages: Josephine Teo

The age from which Central Provident Fund members can receive their payouts will remain unchanged at 65, even when the retirement age and re-employment age are raised.
The age from which Central Provident Fund members can receive their payouts will remain unchanged at 65, even when the retirement age and re-employment age are raised.PHOTO: ST FILE

SINGAPORE - An update on raising the retirement and re-employment ages will be available by September this year, said Manpower Minister Josephine Teo in a Facebook post on Tuesday (June 11).

The minister announced in March that the Tripartite Workgroup for Older Workers had reached a consensus to raise the retirement age and re-employment age, currently at 62 and 67 respectively.

The workgroup has been looking at this issue and others since May last year.

"There's been very good progress, and a meeting of minds on how far and how fast both ages should be raised," Mrs Teo said in the Facebook post while attending the International Labour Conference (ILC) in Geneva.

"Besides attending the ILC together, there were many working discussions between the Tripartite leaders on implementation details, including support to employers."

She also referred to an article in the Chinese-language Lianhe Zaobao on Monday which said that in the last 27 years, the healthy life expectancy of Singaporeans rose 7.2 years to 74.2 years, while life expectancy rose 8.7 years to 84.8 years.

"I am encouraged by these statistics. People living longer and generally healthier lives is a key reason that they work longer - this is a trend that we observed across many developed countries," said Mrs Teo.

Employers must offer eligible workers re-employment from age 62 up to 67. This can be done on yearly contracts, with flexibility in job scope and employment terms, such as wages and benefits.

 
 

The age from which Central Provident Fund (CPF) members can receive their payouts will remain unchanged at 65, even when the retirement age and re-employment age are raised.

"We have been able to focus on making longevity productive for both workers and employers," said Mrs Teo.

The retirement age was last raised in 1999, from 60 to 62. The re-employment age was raised from 65 to 67 in 2017.