Advocates praise extended career opportunities, while critics highlight challenges for elderly workers.
SINGAPORE: Plans to raise Singapore’s retirement age to 65 and the re-employment age to 70 by 2030 have fueled a robust debate as the nation grapples with an aging population. With projections showing one in four Singaporeans will be aged 65 or older by 2030, the initiative aims to address demographic shifts and encourage continued workforce participation.
Building on the 2022 increase of retirement and re-employment ages to 63 and 68, the government intends to incrementally adjust these thresholds to 64 and 69 by 2026, culminating in the 2030 targets. Statistics show that over 90% of eligible senior workers who sought re-employment in 2022 succeeded, highlighting demand among older individuals for extended careers.
Support from Employers and Experts
Ang Tze Phern, a partner at Rajah & Tann’s Employment Group, applauded the initiative, citing its potential to enhance labor market participation and expand the talent pool for businesses. However, Ang emphasized the importance of considering life expectancy, timing, government support, and re-employment terms to ensure a smooth transition.
Similarly, Seow Hui Goh of Bird&Bird’s Employment Group highlighted the alignment with Singapore’s ethos of voluntary retirement and the growing trend of healthier, longer lifespans. She noted the plan’s cultural resonance with values emphasizing financial independence and active contribution.
A recent survey by PAPSG and NTUC U Women and Family found strong support among individuals aged 50 and above, reflecting societal norms valuing work as a means of personal and financial fulfillment.
Concerns for Senior Workers
Despite these positives, the policy faces criticism over its potential challenges for elderly workers. Age discrimination, inflexible workplace arrangements, and job scarcity remain prevalent fears among senior employees. Physical health concerns, such as chronic conditions and mobility limitations, coupled with the physical demands of certain roles, raise questions about workforce suitability for older individuals.
Balancing work with health management or caregiving responsibilities also contributes to stress and burnout, potentially diminishing productivity and job satisfaction. Prolonged employment may be financially necessary for some but could still leave elderly workers vulnerable to unexpected financial instability.
Government and Employer Initiatives
To address these concerns, Singapore will implement Workplace Fairness Legislation in late 2024, prohibiting discrimination and promoting equitable treatment across age groups. Employers are urged to adopt age-friendly policies, embrace technological solutions, and diversify hiring practices to bridge skill gaps and foster inclusivity.
The government has committed to providing support schemes, including grants, wage offsets, and training programs, to facilitate the integration of older workers into the evolving workforce.
As Singapore advances towards its 2030 goals, the initiative underscores the delicate balance between extending career opportunities for older workers and addressing the unique challenges they face in a rapidly changing employment landscape.
