SINGAPORE – Starting 1 January 2025, the retirement age for workers of the National Trades Union Congress (NTUC) will be raised to 64, while re-employment will be possible up to 69.

NTUC vows to support older employees in a bid to foster greater age inclusivity in the workplace. The group provides elderly workers with targeted training to keep their skills sharp, and discusses retirement and re-employment options early to help seniors prepare for the transition.

“Older workers are also assured that their employment benefits and salary remain consistent upon re-employment, unless there is a mutually agreed change in job scope and role,” NTUC said.

Those seeking re-employment will also receive customised Learning & Development training and flexible work options where suitable.

For NTUC, the update to its retirement/re-employment policy comes a year and a half earlier than the national plan.

“By raising the retirement age and re-employment age for our NTUC employees ahead of the national schedule, we are taking proactive steps to build a more inclusive workforce,” said Ng Chee Meng, secretary-general of NTUC.

At present, over 2,300 employees across the NTUC network have continued working beyond the current retirement age of 63. Of this number, 700-plus workers stand to benefit from the policy updates – a move that sets a precedent for other employers in Singapore.

“We care for our older workers and can’t do without them – their wealth of experience, dedication, and resilience are invaluable in driving our economy forward and shaping a stronger Singapore,” Ng of NTUC said.

Also Read: Singapore to raise workers' retirement and re-employment ages

Singapore to raise retirement age to 65 by 2030

Singapore plans to extend retirement to 65 and to support re-employment up to 70 by 2030, according to Gan Siow Huang, the minister of state for manpower.

Re-employment, for one, will be open to all Singaporean citizens and permanent residents who are fit to work and have demonstrated satisfactory performance.

The government has also established financial support programmes for employers who plan to rehire senior workers. These include the Part-time Re-Employment Grant (PTRG) and the Senior Employment Credit (SEC).

With the PTRG, eligible employers who provide part-time work, flexible work, and structured career planning to re-employed seniors can receive a grant of up to S$2,500 (US$1,830) per senior worker or a total of S$125,000 (US$91,500) per company.

The SEC, meanwhile, offers wage offsets to companies that employ people aged 60 and above who earn up to S$4,000 (US$2,930) a month.

In March, Gan pointed out how employers may need to revisit their current workforce requirements and training plans to accommodate senior employees.

“This is why we are taking a stepped approach and announcing the increase early,” the minister said.

Also Read: How Malaysia plans to close the pension gap

The challenges of retiring in Singapore

The Ministry of Manpower said these recent changes to retirement and re-employment policies are necessary because of the increasing life expectancy of Singaporeans. This population trend, however, coincides with the fact that older generations have to contend with inflationary pressures.

According to a recent study from Sun Life Singapore, retirees have been struggling with increased living costs, from general living expenses for 64% of respondents to health care for 43%. Even among high-income retirees, 15% have been “caught off guard” by these higher-than-expected living costs.

While the Singaporean government urges everyone to save up through schemes such as the Central Provident Fund, these savings may not be sufficient for many retirees, especially those who had been unable to put away enough in their younger years.

“Retirees in Singapore will need a significant amount of money to maintain their standard of living. Housing, food, and health care are some of the biggest expenses for retirees in Singapore, and these costs are only expected to rise in the coming years,” said Ho Jian Xiong, a financial services manager with AIA.

“Furthermore, the population in Singapore is rapidly aging. This means that there will be more retirees competing for a limited pool of resources, such as healthcare facilities and social services. This could lead to increased costs and reduced access to services for retirees,” Ho said.

“Overall, retiring in Singapore can be challenging due to the high cost of living, the lack of a social safety net, the aging population, and the increasing retirement age.”

Financial security for senior workers and retirees is a crucial factor behind their ability to “live independently and comfortably,” said Daniel Ng, EVP at Graphen, who called for a multi-faceted approach to caring for Singapore’s Silver Generation.

“Programmes aimed at financial literacy and planning, targeted for seniors, could help them better manage their retirement funds and understand resources available to them, such as housing grants, medical subsidies, or tax relief programmes,” Ng said.

Singapore’s Silver Support Scheme – which provides income support for low-income seniors – is a step in the right direction, he added.

“However, to cover the broader population, additional resources for financial planning workshops or government-backed advisory services could ensure seniors are better prepared financially,” Ng said.

“Public campaigns might also encourage younger Singaporeans to start retirement planning early to reduce the financial burden on the state in the long term.”