At the National Day Rally in 2019, Prime Minister Lee Hsien Loong announced that Singapore’s statutory Retirement Age and Re-Employment Age would be gradually raised — a move aimed at supporting older workers who wish to stay economically active as Singaporeans live longer and healthier lives.
Fast forward to 2025, and we are now midway through that transition. The Retirement Age has already been raised from 62 to 63, and the Re-Employment Age from 67 to 68, with both set to reach 65 and 70 respectively by 2030.
As these changes take effect, conversations around retirement and re-employment have become even more relevant. Yet, many Singaporeans still misunderstand the true meaning of these ages for their careers and retirement plans. In this article, we address some of the common misconceptions people have about retirement and re-employment in Singapore today.
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The Retirement Age Is Different From Re-Employment Age
The first thing to know is that Singapore’s official retirement age differs from the re-employment age.
Retirement Age: Currently 63, to be increased to 64 years from 1 July 2026. This is to be increased to 65 by 2030
Since 1 July 2022, the official retirement age in Singapore has been 63. That means your employers cannot ask you to retire before that age.
As with employment at any age, your employers can always terminate you for poor performance or retrench you if the company needs to shed headcounts. However, dismissing an employee for age-related reasons is not allowed and is considered discriminatory. Employees who feel they have been laid off because of their age can inform the Ministry Of Manpower (MOM) if they feel their employment has been unfairly terminated.
Re-Employment Age: Currently 68 and to be increased to 69 from 1 July 2026. This is to be increased to 70 by 2030
Workers who have reached 63 can officially retire in Singapore. However, those who want to continue working can seek re-employment with their existing employer.
Employers must offer re-employment to eligible employees who want to continue working within their company up to the age of 68. If they cannot do so, they may transfer them to their subsidiaries or another company with the consent of their workers.
It’s worth noting the definition of “eligible employees”. The screenshot below is taken from MOM.
Source: MOM
Simply put, if you are healthy and have performed well previously, your employer has to offer you a re-employment contract if you wish to continue working.
Your Employment Contract
Probably the most important area apart from the eligibility criteria, it’s important to know that the re-employment contract offered to workers may not necessarily be similar to their existing contract. Areas such as scope of work, roles and responsibilities and salary may be adjusted. Your employer is not obliged to offer you the same package for the re-employment contract.
Re-employment contract should be at least 1 year long. It should be renewable on an annual basis till the age of 68.
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Key Difference Between Retirement Age And Re-Employment Age
The critical difference between the retirement and re-employment ages is that employers are not allowed to terminate workers before the retirement age (63) without valid reasons.
Beyond the age of 63, employers are expected to offer re-employment for workers who want to continue working. However, there is an allowance for their scope of work and salary to be negotiated. This is assuming that workers are medically fit to continue working.
Employers unable to provide re-employment options are expected to offer their workers a one-off Employment Assistance Payment (EAP) equivalent to 3.5 months salary, subject to a minimum of $6,250 and a maximum of $14,750.
Retirement Age & Re-Employment Age Does Not Mean You Have To Continue Working Till Then
One of the biggest misconceptions is that a retirement or re-employment age means workers must continue working until that age. This is not true.
Both the retirement and the re-employment age are meant to protect the interest of workers, not their company. Workers can choose to retire earlier if they want to. An extension of the retirement or re-employment age does not change that fact. So no, you are not expected to work till 68 unless you want to.
