SINGAPORE: Increases in Singapore’s retirement age and social security contribution rates
- The Singapore Government has increased the minimum retirement and re-employment ages from 62 to 65 and 67 to 70 respectively, along with increases to the contribution rates for those aged between 55 and 70.
- This update provides more information on the changes that were announced and developments since then.
The Singapore government announced in August 2019 that the statutory retirement and reemployment age will increase, as well as contribution rates to the Central Provident Fund (CPF) for older employees.
These changes were recommended in the Report of the Tripartite Workgroup on Older Workers in light of the demographic trends seen in Singapore. With Singaporeans living longer and healthier lives, the employment rates at older ages have been rising significantly.
Josephine Teo, the Minister of Manpower believes successful implementation of these changes will strengthen Singapore’s businesses’ foundations for older worker employment and allow older workers to contribute actively while earning and saving more for a better retirement.
The increase in CPF rates was initially set to take place on 1 January 2021 but was deferred to 1 January 2022 to help employers manage cost due to the coronavirus pandemic. The changes are expected to continue as planned to reach targeted outcomes over the rest of the decade.
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