Understanding Retirement and Re-employment in Singapore
Navigating retirement in Singapore involves understanding two key legal concepts: the Statutory Retirement Age and the Re-employment Age. While often used interchangeably, they serve very different functions. The retirement age is the age at which an employer can legally ask an employee to retire. However, the Re-employment Age provisions in the Retirement and Re-employment Act (RRA) mandate that employers must offer re-employment to eligible employees who wish to continue working.
As of September 2025, the statutory retirement age in Singapore is 63, and the re-employment age is 68. This means that while your employer cannot dismiss you on the grounds of age before you turn 63, they are also obligated to offer you continued employment from age 63 up to 68, provided you meet the eligibility criteria.
The Scheduled Increase in Retirement and Re-employment Ages
In a move to support senior employment and financial adequacy, the Singapore government announced a gradual increase in both the retirement and re-employment ages. This phased approach is designed to give both employers and employees time to adjust.
The plan is to raise the retirement age to 65 and the re-employment age to 70 by the year 2030. The first two steps of this plan have already been implemented:
- From July 1, 2022: Retirement age increased to 63, and re-employment age to 68.
- Upcoming from July 1, 2026: The next scheduled increase will raise the retirement age to 64 and the re-employment age to 69.
- By 2030: The final target of 65 (retirement) and 70 (re-employment) will be reached.
These changes reflect Singapore's aging demographics and the government's commitment to enabling citizens to work longer if they are willing and able.
Eligibility for Re-employment
To be eligible for re-employment, an employee must meet the following criteria:
- Be a Singapore citizen or Permanent Resident.
- Have served their current employer for at least three years before reaching the retirement age.
- Be medically fit to continue working.
- Have a satisfactory work performance record.
Employers who are unable to offer a suitable position within their own company can transfer their re-employment obligations to another employer with the employee's consent or offer a one-time Employment Assistance Payment (EAP) as a last resort. The EAP is equivalent to 3.5 months' salary, subject to a minimum of S$6,250 and a maximum of S$14,750.
The Role of the Central Provident Fund (CPF)
The Central Provident Fund (CPF) is a cornerstone of Singapore's retirement system. It's a mandatory social security savings scheme funded by contributions from both employers and employees. A common point of confusion is how the retirement age relates to the CPF payout age.
Your CPF savings are locked until you reach a certain age, at which point you can start receiving monthly payouts under the CPF LIFE scheme. This Payout Eligibility Age is currently 65 for members born in 1958 or later. It is crucial to note that the statutory retirement age does not determine when you can start your CPF payouts. You can retire from your job at 63 but will still need to wait until 65 to begin receiving your monthly CPF LIFE income.
Key CPF Age Milestones:
- Age 55: You can withdraw a portion of your CPF savings (up to S$5,000 or your Ordinary and Special Account balances above the Full Retirement Sum) in a lump sum.
- Age 65: Your Payout Eligibility Age. You can start receiving monthly payouts from your Retirement Account through CPF LIFE.
- Age 70: The latest age at which you can defer the start of your CPF LIFE payouts, which results in permanently higher monthly payments (up to 7% more for each year deferred).
Employer and Employee Considerations
The rising retirement and re-employment ages have significant implications for both businesses and their workforce.
For Employers:
- Workforce Planning: Companies must adapt their human resource strategies to manage an older workforce, focusing on job redesign, reskilling, and creating age-friendly work environments.
- Government Support: The government provides various schemes to help employers manage this transition, such as the Senior Employment Credit (SEC), which provides wage offsets for employers who hire Singaporean workers aged 60 and above.
- Contractual Obligations: Re-employment contracts can be offered on different terms (e.g., salary, job scope) but must be reasonable and based on the company's needs and the employee's capabilities.
For Employees:
- Financial Planning: It's essential to plan your finances with the correct CPF payout age (65) in mind, not the retirement age (63). The option to work until 68 (and soon, 70) provides an opportunity to build more savings.
- Lifelong Learning: Staying relevant in the workforce requires a commitment to continuous learning and upskilling. Utilize schemes like SkillsFuture to acquire new competencies.
- Health and Wellness: Maintaining good health is a prerequisite for continued employment and enjoying a fulfilling retirement.
Comparison: Retirement Age vs. Re-employment Age
| Feature | Statutory Retirement Age | Statutory Re-employment Age |
|---|---|---|
| Current Age (2025) | 63 years old | Up to 68 years old |
| Target Age (by 2030) | 65 years old | Up to 70 years old |
| Purpose | Age before which an employer cannot terminate an employee based on age. | Age up to which an employer must offer re-employment to eligible employees. |
| Employer's Obligation | To not dismiss the employee due to age. | To offer a new contract or one-time EAP to eligible employees. |
| Impact on Employee | Provides job security up to this age. | Provides an opportunity to continue earning an income past retirement age. |
Conclusion: Planning for a Longer, Healthier Life
So, what's the retirement age in Singapore? The simple answer is 63, but the reality is far more nuanced. The legislative framework, with its emphasis on re-employment and the distinct CPF payout timeline, encourages a more flexible and extended working life. The gradual increase to a retirement age of 65 and re-employment age of 70 by 2030 underscores a national strategy to empower seniors to remain economically active and financially secure. For both individuals and companies, understanding these interconnected policies is the first step toward successful planning for the future. For more official details, you can visit the Ministry of Manpower website.
