Retirement
Retirement plan Pixabay

Currently, in Singapore, the re-employment age is 67, while the retirement age is 62. But, the country may bring some changes in the age limits as citizens are enjoying more years of good health as well as demonstrate sustained productivity at work.

During the Parliament session, Minister of Manpower Josephine Teo said on Tuesday that Singapore may raise the retirement and re-employment ages, but the exact timing of the changes and how much will be increased, all these are yet to be decided.

Teo said that they have taken this issue into consideration after a working group of individuals from the government, labour unions and private sector in Singapore reached a consensus on the matter.

As per Teo, the changes in retirement plans by increasing the age limit will motivate workers as well as employers to invest in skills upgrading and job redesign for older workers. She also believes that on the same time, increasing the re-employment age will afford companies the flexibility to reset employment terms, such as salary and job scope.

In addition, the minister said, "We should carefully consider the timing and pacing of these moves." While adding an example of Denmark, where the retirement age is set to go up from 65 to 68 by 2030, Teo also said, "Countries looking to raise their retirement ages typically make their intentions known five to ten years in advance."

It should be noted that in the country, life expectancy has risen from 76.3 in 1995 to 83.1 in 2017. By 2040 it is expected to reach 85.4 years.

So it is clear that Singapore is struggling with an ageing population and meanwhile trying to remain as a vibrant economy by limiting restrictions on high-skilled foreign labours, as well as re-balancing the education system to attract investment and encourage enterprise.

As per Singapore's Retirement and Re-employment Act, "Any person who is guilty of any breach or any offence under this Act for which no penalty is otherwise provided shall be liable on conviction to a fine not exceeding $5,000 or to imprisonment for a term not exceeding 6 months or to both, and for a subsequent offence under the same section to a fine not exceeding $10,000 or to imprisonment for a term not exceeding 12 months or to both."