Workers who wish to work for longer can do so with the amendment to the Retirement and Re-employment Act.
The Retirement and Re-employment (Amendment) Bill was read for the second time in Parliament on 1 November 2021.
From 1 July 2022, both the Retirement Age and the Re-employment Age will be increased, from 62 to 63, and 67 to 68 respectively.
“Singapore’s labour market is adapting to an older workforce, in tandem with demographic needs. With the support of the tripartite partners, between 2010 and 2019, we have made necessary adjustments to our employment and retirement policies, so that senior workers can continue to work beyond 65 if they wish,” said Manpower Minister Tan See Leng.
He added that the Government first started promoting the concept of re-employment in 2007. After extensive research, the statutory re-employment age was extended to 65 in 2012, and 67 in 2017.
He said: “These innovations in our labour market have helped allow our seniors to remain economically active. By 2020, about a quarter of our resident labour force was aged 55 and above, up from 16.5 per cent a decade ago. This has helped more of our senior workers earn more and save more.”
Dr Tan also assured that the changes will not affect the existing CPF withdrawal policies and ages, that CPF members can still withdraw at least $5,000 at 55 years of age, and that their CPF payouts can still begin at 65.
NTUC has long advocated for workers to have the option to work for longer.
In 2018, the congress called for fresh efforts to prepare older workers for the future, thus leading to the formation of the Tripartite Workgroup on Older Workers.
The workgroup’s task was to review the longer-term relevance of the retirement age and re-employment age; examine senior workers’ CPF contribution rates and their adequacy for retirement needs; promote inclusive and progressive workforce and workplaces that value senior workers.
On 1 January 2021, NTUC led by example and raised the retirement and re-employment age ceiling of its workers to 63 and 68 respectively – more than a year ahead of the national schedule.
On 1 July 2021, all its 12 social enterprises, such as FairPrice, Income and First Campus, also followed suit in increasing the age ceilings.
Labour Members of Parliament Patrick Tay, Heng Chee How, Melvin Yong and Yeo Wan Ling, together with Nominated Member of Parliament Abdul Samad Abdul Wahab, stood in support of the Bill.
While heartened that Tripartite Partners remain committed to the support of older workers, Mr Tay said he was concerned that many companies are not re-employing existing older workers in view of the uneven and uncertain outlook.
Mr Tay raised six suggestions for the Government’s consideration, including the provision of additional tiers of unemployment income support for PMEs who are involuntarily unemployed, providing a short-term salary support of up to 50 per cent, capped at $3,800 per month for six months, for companies who hire mature PMEs who are unemployed, and upskilling of older workers.
“Older employees have amassed a wealth of experience over the years in their specialised areas of work, and it would be our loss if we do not tap on this treasure while still available,” he said.
Mr Heng, on the other hand, focused his debate on the fears faced by older workers over job security.
He said: “Safeguarding the employability of the mature worker from early middle age must now be a central focus of policy research, planning and formulation.
“Do not wait till they are near retirement age. This must go hand in hand with ensuring a level playing field for Singaporeans in being considered for job openings.”
With that said, Mr Heng added that policies and incentives are necessary but not sufficient to ensure desired outcomes. Effective last mile implementation is critical to ensuring real and sustained outcomes.
Mr Heng suggested that more must be done to further boost the capacity and effectiveness of job retraining and employment facilitation; for mature workers who are displaced and in-between jobs; review the structuring and conducting of Continuing Education & Training (CET).
Describing the amendments to the statutory retirement and re-employment ages as timely, Mr Yong said that as Singaporeans’ lifespan increases, it is vital that more focus is given to the longevity of workers’ careers.
He said: “Long gone are the days when it was the norm to join a company and work in that same company for the entirety of one’s career.
“There is a new saying – ‘career mobility is the new career stability’. I know that many of our younger workers, particularly the PMETs, live by this axiom.”
He added that companies need to change their mindset when it comes to hiring senior workers, and that financial literacy an important enabler for retirement adequacy.
“We must strive to help Singaporeans work longer more meaningfully by changing the narrative of hiring senior workers into a worthwhile investment instead of a hire that comes with Government subsidies,” he said.
Meanwhile, Ms Yeo believes that the continued success of Singapore will depend on how the country leverages the experience and expertise of older workers as Singaporeans live longer lives.
She went on to say that more needs to be done to tackle the fundamental problem of a negative perception towards ageing.
She alluded that the successful integration of senior employees would require a shift in mentality of both employers and senior employees; that employers needed to take a leap of faith, taking advantage of Government schemes to hire and retrain their senior staff.
Ms Yeo also called on the Government to provide greater support and leadership in providing career guidance to older workers in order to extend their working lifespan.
Mr Samad shared that the unions have long advocated for the opportunity for older workers to work for as long as they wish to.
He said: “We believe older workers can continue earning incomes to help meet on-going living expenses and strengthen their retirement adequacy.
“Workers still have the choice to retire early if they decide to. NTUC believes that having a job is the best welfare.”
Recounting his engagement with older workers who have retired, Mr Samad said that many felt it was a real stigma to wake up one day to find out that he or she is no longer working, with no sense of purpose.
As such, he hopes that the Government can be flexible in allowing workers to have their CPFs payout to be made earlier, such as at the time of their retirement, so that they can continue to pursue their interests in their golden years.
“Hope government can consider this appeal for our workers to enjoy their retirement years with steady income,” he shared.
