KUALA LUMPUR, August 19 — Singapore Prime Minister Lee Hsien Loong announced that the retirement age will be gradually raised to 65 from 62, while re-employment age will rise to 70 from 67.
Bloomberg reported that pension-contribution rates for workers will also be increased so that by 2030, any worker aged 60 or below will get the full rate.
It is part of the government’s support for older workers in the aging island nation, as preparations are being made for transition from current leadership to a new generation in coming years.
The Lee administration also reportedly set aside a fund this year of SG$6.1 billion to senior citizens, including subsidised health care for those in their 60s.
The government will assist companies to adjust to greater expenses connected with pension modifications, as employers need to match the pension fund contributions of their employees.
Manpower Minister Josephine Teo reportedly said the increase in retirement age would encourage employees and employers to invest in skills enhancement and job adaptation for elderly employees, while raising the re-employment age is intended to give companies more flexibility to reset work terms to deal with business uncertainties.
Singaporeans now have the longest life expectancy in the world at nearly 85 years, with 1,300 centenarians among a population of less than six million.