If you could keep the parts of your job you enjoy and get two weekdays back, would you still want to retire completely?
For some older workers, a three-day week (at a lower monthly salary, of course) might be enough for them to want to stay at their workplace to continue earning an income, stay connected to colleagues, while freeing up free time to care for a spouse, look after grandchildren or do something they have been putting off for years.
On 26 October 2026, the Government accepted the recommendations of the Tripartite Workgroup on Senior Employment. These include raising the statutory retirement age from 64 to 65 and the re-employment age from 69 to 70 on 1 January 2029. The workgroup also recommended measures that could make it easier for older workers to stay employed on a lighter schedule.
That is where semi-retirement can make sense. If a smaller pay cheque is enough to cover some regular expenses while giving Singapore seniors more control over their week, semi-retirement could be an enticing option for older workers in Singapore.
The Flexi-Load Programme Could Make It Easier To Work Fewer Days
Say you are ready to go from five days a week to three. You might be happy to take a lower salary in exchange for two days back. Your employer, though, still has to figure out who will handle the work on the days you are away.
In some cases, that could mean splitting the job between two people. In others, it could mean keeping a few responsibilities that make sense for a three-day week and handing over the rest.
This is where the new Flexi-Load Programme comes in. It will help employers with the costs of redesigning jobs to create more part-time roles and roles that cover a specific part of a full-time job. The programme will support opportunities for workers and jobseekers aged 50 and above, and will replace the existing Part-Time Re-employment Grant when it expires at the end of 2027.
Earned Income Relief Can Help You Keep More Of Your Part-Time Pay
If you are 62 and move to a part-time role that pays $2,000 a month, that gives you $24,000 a year. Under current rules, you qualify for up to $8,000 in Earned Income Relief at age 60 and above, compared with up to $6,000 for those aged 55 to 59. If that salary is your only taxable income and you are a Singapore tax resident, the relief brings your chargeable income down to $16,000 even before other reliefs. Since the first $20,000 is taxed at 0%, you would pay no income tax in this example.
The Government has also accepted the workgroup’s recommendation to increase Earned Income Relief for seniors who work beyond the statutory retirement and re-employment ages. In other words, part-time work can not only give you more time, but also allow you to take home a higher proportion of your salary.
From 2028, the new Re-Employment Credit will replace the Senior Employment Credit. It is meant to help employers hire and retain workers beyond the statutory retirement and re-employment ages. More details are expected in the first half of 2027. For a company weighing up whether to keep an experienced worker in a part-time role, the credit could make that decision easier.
A Shorter Workweek Gives You Time For The Things You Want To Do In Retirement
Working fewer days each week can give Singapore seniors more time back. If you know your Thursdays and Fridays are free, you basically have a long weekend every week. This gives you time to sign up for a class to pursue a hobby you are interested in, spend more time with your grandchildren, or volunteer regularly. And if your job lets you work from home on one of your workdays, that can make a three-day week even easier to manage.
For semi-retirement to work, both workers and employers must be in sync on their expectations. If you move to a three-day week, agree with your employer on which responsibilities you will keep and who will take over the rest. With both in place, you can keep earning an income and start doing some of the things you’ve been saving for in retirement.
Read Also: What Happens If You Continue Working After Singapore’s Retirement Age
Photo Credit: iStock/3yephotography
