Singapore will gradually raise retirement age by three years to 65, Singaporean Prime Minister Lee Hsien Loong said on August 18 in his speech on the country’s National Day (Photo: AFP/VNA) Singapore (VNA) – Singapore willgradually raise retirement age by three years to 65, Singaporean Prime MinisterLee Hsien Loong said on August 18 in his speech on the country’s National Day.
The retirement age, which is currently at62, will go up to 63 in 2022 before being raised further to 65 by 2030.
Similarly, the re-employment age, whereemployers must offer work in the same organisation, will go up from 67 to 68 inthree years’ time, and then to 70 by 2030.
The Central Provident Fund (CPF)contribution rates of Singapore will also be raised for workers above the ageof 55, he added.
Currently, the total CPF contribution rateis 37 percent for workers up to 55 years old and it declines as the age bandincreases.
By the time the changes are completed,workers aged 60 and below will enjoy full CPF rates, said the Singaporean PM.
The CPF rates will only begin to taper downafter 60 and level off after 70, he added.
The first adjustment in the CPFcontribution rates is set for 2021 and will be followed by subsequent increasesgradually.
Lee stressed that these newly announcedadjustments do not affect CPF withdrawal policies or withdrawal ages. Workers canstill take out some money at age 55 and can still start CPF payouts from age65.
He noted that businesses can expect a“support package” from the Singaporean government to help them adjust to thechanges, which will be announced by Deputy PM Heng Swee Keat in next year’sBudget speech.
With an average life expectancy of nearly85 years, Singapore has the longest life expectancy in the world.-VNA
The retirement age, which is currently at62, will go up to 63 in 2022 before being raised further to 65 by 2030.
Similarly, the re-employment age, whereemployers must offer work in the same organisation, will go up from 67 to 68 inthree years’ time, and then to 70 by 2030.
The Central Provident Fund (CPF)contribution rates of Singapore will also be raised for workers above the ageof 55, he added.
Currently, the total CPF contribution rateis 37 percent for workers up to 55 years old and it declines as the age bandincreases.
By the time the changes are completed,workers aged 60 and below will enjoy full CPF rates, said the Singaporean PM.
The CPF rates will only begin to taper downafter 60 and level off after 70, he added.
The first adjustment in the CPFcontribution rates is set for 2021 and will be followed by subsequent increasesgradually.
Lee stressed that these newly announcedadjustments do not affect CPF withdrawal policies or withdrawal ages. Workers canstill take out some money at age 55 and can still start CPF payouts from age65.
He noted that businesses can expect a“support package” from the Singaporean government to help them adjust to thechanges, which will be announced by Deputy PM Heng Swee Keat in next year’sBudget speech.
With an average life expectancy of nearly85 years, Singapore has the longest life expectancy in the world.-VNA
VNA
