Singapore has officially confirmed a key retirement policy shift — starting from 2025, the national retirement age will rise from 63 to 64. This move aligns with the country’s long-term plan to ensure financial security for older workers while addressing the ageing population challenge. The Ministry of Manpower has outlined this as part of its broader workforce strategy. For employees, this change impacts not only job retention but also CPF contributions and re-employment benefits. Understanding what this policy means is vital for workers, especially those approaching retirement age in Singapore.
New Retirement Age Rules for 2025
From 1 July 2025, the retirement age increases to 64 for all Singapore citizens and permanent residents. This means employers are now legally obligated to retain eligible employees until the new retirement threshold. The move aims to support active ageing policies and promote longer careers. The minimum re-employment age will also shift from 68 to 69. Workers must understand their employment rights under these new rules to plan effectively. These adjustments will affect not just formal employment contracts, but also pension eligibility timelines and medical coverage continuity.
What It Means for Older Workers
The shift to 64 will give older workers an extra year to earn income, grow their savings, and increase CPF LIFE payouts. Many employers have responded positively, offering schemes to support older employee retention. However, some workers may face challenges such as adapting to new job technologies or coping with physically demanding roles. Government programs like the Senior Employment Credit and Part-Time Re-employment Grant aim to ease the transition. These incentives encourage employers to offer flexible or reduced-load roles, ensuring dignified employment opportunities for all older staff members.
CPF Contributions and Long-Term Benefits
As the retirement age increases, so too does the period during which workers and employers make mandatory CPF contributions. This has a direct impact on the retirement savings growth of older employees. Higher CPF balances mean better CPF LIFE monthly payouts after retirement. The government also plans to adjust CPF contribution rates for senior workers to narrow the savings gap. With more working years, older Singaporeans can potentially enjoy a more secure retirement, especially in the face of rising healthcare and living costs in urban Singapore.
Key Takeaway for Singapore’s Workforce
The increase of Singapore’s retirement age to 64 by 2025 marks a significant step toward creating a more inclusive and sustainable workforce. While it offers benefits such as extended financial growth and greater retirement security, it also demands proactive planning from both employers and employees. Companies will need to rethink job roles, while older workers should stay adaptable and invest in lifelong learning. Overall, this policy shift is about more than just age — it’s about creating value for senior workers and recognizing their contributions well into their sixties.
| Policy Detail | Update Effective |
|---|---|
| New Retirement Age | 64 (from 1 July 2025) |
| New Re-employment Age | 69 (from 1 July 2025) |
| CPF Contribution Duration | Extended by 1 year |
| Employer Obligation | Retain staff till 64 |
| Government Support | Senior Employment Credits |
Frequently Asked Questions (FAQs)
1. What is the new retirement age in Singapore?
The retirement age will be raised to 64 starting from 1 July 2025.
2. Will the re-employment age change too?
Yes, the re-employment age will increase from 68 to 69 in 2025.
3. How does this affect CPF contributions?
Workers will contribute to CPF for one more year, boosting retirement savings.
4. Are there support schemes for employers?
Yes, programs like the Senior Employment Credit offer incentives to employers.
