Prime Minister Lee Hsien Loong announced on Sunday (Aug 18) during the National Day Rally 2019, that the Singapore Government will raise the retirement age and re-employment to 65 and 70 respectively, by 2030.
The retirement age will be raised from 62 to 63 in 2022, and eventually to 65 by 2030.
The re-employment age will be raised from 67 to 68 in 2022, and eventually to 70 by 2030.
Older workers will also get more help to build up their retirement savings, as their Central Provident Fund (CPF) contribution rates will be raised. The whole process will take about 10 years or so, “but it will depend on economic conditions”, he said at the National Day Rally.
PM Lee also emphasized that there will be no changes to the CPF withdrawal policies or CPF withdrawal age. CPF members can still withdraw some money at age 55 and start their monthly payouts from age 65.
Source: Toggle.sg
Source: Toggle.sg
How Does These Changes Impact You?
Older workers have the option to retire later and have more years to accumulate their retirement funds. If you have not done your retirement planning based on the new retirement age and re-employment age, it is a good time to review your plan.
Businesses will also be affected because their spending on insurance and skills upgrading of older worker is likely to increase.
To read the full National Day Rally 2019 Speech, you can visit the Prime Minister’s Office website.
If you need to review your retirement plan, please contact your FLA Organization Financial Planner.
