Singapore Raises Retirement Age in 2025 – Singapore has officially raised its retirement age in 2025, setting in motion a crucial shift for workers, employers, and retirees across the nation. As the country grapples with a rapidly aging population, these changes are aimed at boosting senior employability, financial security, and workforce inclusivity.
In this article, we break down everything you need to know about the Singapore retirement age increase in 2025, what it means for you or your organization, and how you can plan ahead. Whether you’re an employee nearing retirement, a business leader handling manpower planning, or a young professional thinking long-term, this guide offers simple explanations, key data, and official sources.
Singapore Raises Retirement Age in 2025
| Topic | Details |
|---|---|
| New Retirement Age (2025) | 63 years (remains unchanged), rising to 64 in 2026 |
| New Re-employment Age (2025) | 68 years (remains unchanged), rising to 69 in 2026 |
| Future Targets | Retirement age: 65; Re-employment age: 70 by 2030 |
| Reason for Change | To support older workers and manage ageing population |
| Benefits for Employers | Access to Senior Employment Credit, PTRG grants |
| Official Source | Ministry of Manpower |
Singapore’s retirement age increase in 2025 is more than just a number – it represents a national commitment to inclusive growth, longer careers, and greater financial security for seniors. Both employees and employers should start adapting early, whether through upskilling, policy reviews, or financial planning.
This transition also calls for a cultural shift, where age is seen not as a limit, but as a source of experience, stability, and value. With the right mindset and support, the longer career runway can be a win-win for all.
Why Is Singapore Raising the Retirement Age?
Singapore’s workforce is aging fast. By 2030, it is expected that one in four Singaporeans will be aged 65 and above. To ensure older citizens remain financially secure and the economy remains productive, the government announced a phased increase to the retirement and re-employment ages.
These changes are part of recommendations by the Tripartite Workgroup on Older Workers, a body comprising representatives from the government, employers, and unions.
Additionally, this move helps align with global best practices while maintaining Singapore’s competitiveness in the global labor market.
What Are the New Retirement and Re-employment Ages?
Current (2025) Situation:
- Retirement Age: 63
- Re-employment Age: 68
Confirmed Changes:
- From 1 July 2026:
- Retirement age will increase to 64
- Re-employment age will increase to 69
Target by 2030:
- Retirement age: 65
- Re-employment age: 70
This means Singaporeans who want or need to work longer can continue doing so, with legal protection against being forced out before reaching the official re-employment age.
What Is the Difference Between Retirement and Re-employment Ages?
- The retirement age is the minimum age before which your employer cannot legally ask you to retire.
- The re-employment age refers to the age up to which your employer must offer you a chance to continue working, provided you’re medically fit and your performance is satisfactory.
This two-tier system ensures flexibility while protecting older workers.
How Does This Impact Employees?
1. Longer Earning Years
If you’re in your 50s or early 60s, this extension can help you continue earning and saving for a longer period, reducing reliance on your Central Provident Fund (CPF) savings.
2. More Flexibility
Many seniors want part-time or flexible jobs rather than full retirement. With re-employment laws, companies are obliged to make this possible.
3. Upskilling Opportunities
Programs like SkillsFuture are geared towards helping older employees stay competitive and transition into less physically demanding roles.
4. Mental and Social Well-being
Continued employment promotes better mental health, gives seniors a sense of purpose, and supports social interaction.
What Should Employers Do to Prepare?
1. Review HR Policies
Ensure your retirement and re-employment contracts comply with the new age limits. Start discussions early with employees turning 63 or above.
2. Apply for Government Support
Employers can receive:
- Senior Employment Credit (SEC): Wage offsets for hiring older Singaporeans
- Part-time Re-employment Grant (PTRG): Up to $125,000 per company
More info: Senior Worker Support Package
3. Create an Age-Friendly Workplace
This includes job redesign, ergonomic tools, mentorship roles, and phased retirement plans.
4. Train Managers on Age Diversity
Managers should be trained to understand age inclusivity, avoid ageism, and manage multi-generational teams.
How This Works?
Let’s say Mr. Tan turns 63 in August 2025. His employer cannot ask him to retire. Instead, Mr. Tan can choose to retire or continue working.
If Mr. Tan opts to work beyond 63, and performs well, his employer must offer him re-employment until at least age 68. By 2026, this will extend to age 69, and eventually age 70 by 2030.
This gives him more financial freedom, continued social engagement, and career satisfaction.
Challenges and Considerations
For Employees:
- Health Concerns: Some may not be able to continue working due to health issues.
- Job Security: There may be uncertainty around contract terms during re-employment.
For Employers:
- Cost Implications: Wage support schemes help, but some restructuring may be needed.
- Cultural Shift: Age diversity in teams may require mindset changes and inclusive policies.
How Does This Compare Globally?
- Japan: Retirement age is not mandatory; many work into their 70s
- U.S.: No mandatory retirement age, but full Social Security benefits start at 67
- Germany: Statutory retirement age is 67
Singapore’s approach is relatively progressive, balancing economic needs with employee well-being.
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FAQs
Q1. Is retirement at 63 compulsory in Singapore?
No. Retirement is not compulsory. Employers cannot make you retire before 63 (rising to 64 in 2026). You may continue working if you wish.
Q2. What are the criteria for re-employment?
You must:
- Be Singaporean or PR
- Have served at least 3 years with the current employer
- Be medically fit and have satisfactory performance
Q3. Will CPF payout age change too?
No. The CPF payout eligibility age remains unchanged at 65 (as of 2025).
Q4. Can I negotiate my re-employment terms?
Yes. Employers and employees can mutually agree on job scope, salary adjustments, or part-time options during re-employment.
Q5. Are there protections against age discrimination?
Yes. Under the Retirement and Re-employment Act (RRA), age discrimination in employment practices is prohibited.
