The National Trades Union Congress (NTUC) in Singapore has announced several key changes to the retirement and re-employment ages, set to take effect in 2026. This change is happening 1½ years ahead of the national schedule. The retirement age is 63, with re-employment extending to 68, following adjustments made in 2022.
According to a 2019 government plan, these ages were scheduled to gradually rise, with the retirement age reaching 65 and re-employment extending to 70 by 2030. However, NTUC has chosen to implement these adjustments earlier, marking the second time since 2019 that it has done so.
These changes aim to address the challenges of an ageing population and help Singaporeans better prepare for financial security in retirement. By allowing people to work longer and encouraging financial independence, the new rules will give individuals more chances to keep earning and saving while also meeting the changing needs of the workforce.
Singapore’s new retirement age and re-employment changes
The changes introduced by the government reflect Singapore’s efforts to support active ageing and ensure citizens have enough savings for retirement. These reforms focus on increasing the retirement and re-employment ages, as well as raising CPF contribution rates, allowing individuals to work longer, save more, and build financial security for their future. Here are the key changes:
Retirement age increase
The retirement age in Singapore is set to gradually rise from the current age of 62 to 65 by 2030. This means that individuals who reach 62 years of age after January 2026 will not be required to retire from their jobs until they turn 65. The new retirement age aims to provide older workers with more time to continue earning and contributing to their CPF accounts before they fully retire.
Raising the re-employment age
The re-employment age will also be adjusted. The re-employment age refers to the age at which employees who are willing and able to work can continue to work part-time or on contract until they reach a higher age. As per the new rules, the re-employment age will be raised from 67 to 70 by 2030. This is intended to support those who want to stay in the workforce longer.
CPF contribution rates: what’s changing?
Along with changes to the retirement and re-employment ages, the Singapore government is also making changes to CPF (Central Provident Fund) contribution rates. These changes are meant to help older workers continue saving for retirement and give them more financial security as they age. The new contribution rates will start in 2026, marking an important update in how CPF accounts are managed.
The contribution rates will increase gradually and will apply to workers aged 55 and older. This step-by-step increase will help workers save more for their retirement. The new rates are as follows:
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These increases will mainly help employees build more savings in their Special Accounts (SA), which offer higher interest rates than other CPF accounts. This change will provide better financial stability for workers as they get older. The government has said that the contribution increases will happen in stages to give businesses time to adjust to the higher costs.
Transition to higher contribution rates
Employers in Singapore will need to prepare for these changes as well. The increase in CPF contribution rates means employers will have to pay more into workers’ CPF accounts, raising their overall costs. For businesses that depend on older workers, this could lead to higher wage expenses.
To help businesses manage this transition, the Singapore government has introduced support measures like wage offsets and grants. These initiatives are designed to encourage employers to keep their senior employees, helping to balance out the higher CPF contributions.
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While the policy changes aim to strengthen retirement savings, businesses will need to reassess their workforce strategies. Companies should plan, update HR policies, and ensure they comply with the new rules when they take effect in 2026.
Government support for employers
To help businesses and encourage the employment of older workers, the Singapore government is introducing several support programs. These initiatives provide financial assistance and resources to employers who hire senior workers.
Part-time Re-employment Grant (PTRG)
The Part-time Re-employment Grant (PTRG) helps employers who give part-time or flexible work to older workers. This is especially important now, as flexible work is more in demand after the pandemic. The grant makes it easier for businesses to hire seniors by giving them financial support.
Employers can receive up to S$125,000, depending on how many senior workers (aged 60 and above) they hire for part-time or flexible jobs. They get S$2,500 for each eligible worker, with a cap of S$125,000 per company. The goal is to encourage more flexible jobs for seniors.
Senior Employment Credit (SEC)
The Senior Employment Credit (SEC) is another program that supports employers. It provides wage subsidies to businesses that hire senior workers aged 60 and above. The SEC helps reduce the financial burden on companies while encouraging the hiring of older employees.
The SEC offers wage subsidies for senior workers earning up to S$4,000 per month. The subsidy amount depends on the worker’s age, with higher percentages for older workers. Employers can receive up to 7% of the senior worker’s wage, with the percentage decreasing as the worker gets older.
Why do These Changes Matter?
As Singapore’s population continues to age, the need for policies that support older workers becomes increasingly important. The labour force participation rate for older workers has been steadily rising, but many older individuals still face challenges in finding suitable employment.
The adjustments to retirement and re-employment ages aim to provide older workers with the chance to stay employed, which reduces the dependency ratio and alleviates the economic challenges presented by an ageing population.
Moreover, the extended working period enables older workers to continue contributing their knowledge and experience to the economy, which can have positive effects on workplace culture and overall productivity. -PIIC
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