Singapore is going all out to support its ageing population. To ensure that the aged members of its population continue to remain employed longer, Singapore is increasing the retirement age by a year. Right now, the retirement age is 63, but starting 2025 it will be raised to 64. This will keep on increasing steadily and by 2030, the retirement age will be 65. The re-employment age will also be increased from the present 68 to 69 in 2025.
The objective is to render more flexibility to the ageing members of Singapore’s workforce and offer them an opportunity to feel more secure.
Why would employers wish to re-employ senior workers? Well, the Singapore government has taken this possibility into account too. It is offering financial support to help employers retain the older members of their workforce. The government has introduced the part-time re-employment grant (PTRG) and the senior employment credit (SEC) schemes.
The PTRG initiative offers monetary incentives/ grants of up to S$125,000 to organsiations that re-employ senior workers on a part-time basis with flexible hours. The initiative supports establishments that design their approach to work such that the needs of their senior employees (aged 60 and above) are taken into account, allowing them to enjoy more flexibility and contributing their skills to the organisation.
The SEC scheme provides financial incentives to employers who hire workers aged 60 and above earning up to S$4,000 a month.