Impact of the 2022 Increases in Retirement and Re-employment Ages on the Employment Outcomes of Senior Workers

The Retirement and Re-employment Act (RRA) was enacted in 2012. Over the years, the RRA has undergone several changes to bring Singapore closer to its eventual goal of setting the retirement age (RA) and reemployment age (REA) at 65 and 70 respectively by 2030. The most recent changes were in 2022 when the RA was raised from 62 to 63, and the REA was increased from 67 to 68.

This study examined the impact of the 2022 increases in the RA and REA on the employment outcomes of senior workers. The results showed that the RA and REA increases raised the employment rates of senior workers, thus providing evidence that they had been effective in keeping senior workers in the workforce. For the REA, the positive impact of the increase in 2022 on employment was similar to that found for the earlier increase in 2017 (when the REA was raised from 65 to 67), suggesting that the policy of raising the REA had not reached diminishing returns.

At their currently defined ages, the RA and REA remain relevant as they collectively provide legislative protection and set the social norms of retirement for senior workers. Given Singapore’s increasing life expectancy and ageing population, the RA and REA protect senior workers and enable them to work longer if they wish to. This in turn allows employers to meet their manpower needs in a tight labour market.

The Government has recently convened the Tripartite Workgroup on Senior Employment and an Alliance for Action on Empowering Multi-Stage Careers for Mature Workers to review and refresh Singapore’s senior employment policies in two key areas: (i) empowering our senior workers to be productive and employable, and (ii) promoting age-friendly jobs and workplaces. These efforts, taken alongside upcoming increases to the RA and REA, should support both senior workers and employers in maximising the potential of Singapore’s senior workforce.

The views expressed in this paper are solely those of the authors and do not necessarily reflect those of the Ministry of Manpower (MOM), Ministry of Trade and Industry (MTI), or the Government of Singapore

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