SINGAPORE: Singapore’s stance on retirement age and re-employment policies has ignited a vigorous debate among experts and citizens alike. With projections indicating that by 2030, one in four Singaporeans will be aged 65 or older, the government’s plan to elevate retirement age to 65 and re-employment age to 70 has drawn both praise and skepticism.
The trajectory towards these thresholds began with previous increases in retirement and re-employment ages to 63 and 68, respectively, in 2022.
The latest plan aims to incrementally raise these ages to 64 and 69 by 2026, culminating in the targeted 65 and 70 by 2030.
Last year’s statistics revealed that over 90% of eligible senior workers seeking to prolong their careers were successfully re-employed.
Ang Tze Phern, partner at Rajah & Tann’s Employment Group, told Singapore Business Review (SBR) that this initiative not only fosters extended participation in the labor market but also presents businesses with a broader talent pool.
However, he highlighted four crucial factors the government must consider: life expectancy, timing, government support, and re-employment terms.
Seow Hui Goh, partner at Bird&Bird’s Singapore Employment Group told SBR that she supports the move, citing the demographic shift towards longer lifespans and healthier aging. She emphasized the voluntary nature of retirement, reflecting Singapore’s ethos of allowing individuals to work as long as they desire.
A recent survey conducted by PAPSG and NTUC U Women and Family found overwhelming support among participants aged 50 and above for raising retirement and re-employment ages, echoing the sentiment of cultural and societal norms valuing financial independence and continued contribution.
However, while the initiative promises benefits for senior workers, concerns loom over inter-generational dynamics and technological adaptation in the workplace. Ang warns of potential clashes in values and skill disparities among different age groups, urging employers to proactively address these challenges.
The survey also revealed apprehensions among senior workers regarding age discrimination, inflexible working arrangements, health issues, and job scarcity.
Aging can bring about various health issues, including chronic conditions, mobility limitations, and cognitive decline. Continuing to work may exacerbate these health concerns or make it challenging to manage them effectively.
On top of this, many jobs require physical exertion or prolonged periods of standing, which may become increasingly difficult for elderly individuals to handle as they age, leading to discomfort, fatigue, or increased risk of injury.
Delaying retirement may be financially necessary for some elderly individuals, especially if they lack adequate savings or pension benefits. However, prolonged employment may still result in financial instability, particularly if they encounter unexpected expenses or are unable to work due to health reasons.
Balancing work responsibilities with age-related health issues or caregiving responsibilities can lead to stress, exhaustion, and burnout among elderly workers. This may undermine their physical and mental health, as well as their job satisfaction and productivity.
While some elderly individuals may choose or need to continue working beyond traditional retirement age, it’s essential to consider the potential challenges and barriers they may face in the workforce and ensure that appropriate support and accommodations are in place to address their needs.
To address this, the government is set to enforce Workplace Fairness Legislation in the latter half of 2024, aiming to prohibit discrimination and ensure equitable treatment.
Employers are encouraged to adopt age-friendly practices, implement technological solutions, and review hiring policies to accommodate diverse skill sets.
The government has also assured that it offers various support schemes, including grants, wage offsets, and training programs, to ease the transition for both employers and senior workers.