Singapore's Minister of Manpower Josephine Teo said earlier this week that the retirement age and re-employment age in the country are set to be raised.
The exact timing of the changes, and by how much are yet to be determined, said a report by Bloomberg. The move comes as citizens enjoy more years of good health and demonstrate sustained productivity at work.
Currently, the retirement age is at 62, while the re-employment age is 67. The decision was made after a working group comprising individuals from the government, labor unions and private sector in the city-state reached a consensus on the matter.
Teo explained that a higher retirement age will motivate both workers and employers to invest in skills upgrading, as well as job redesign for older workers. Meanwhile, increasing the re-employment age will afford companies the flexibility to reset employment terms, such as salary and job scope, to cope with business uncertainties.
“We should carefully consider the timing and pacing of these moves. Countries looking to raise their retirement ages typically make their intentions known five to ten years in advance,” the minister said, citing Denmark, where its retirement age is set to go up from 65 to 68 by 2030, over 11 years.