It’s not clear who first said the famous phrase “age is just a number”, but when it comes to retirement in Singapore, age is actually two numbers. First, there’s the statutory retirement age, and secondly, the CPF Payout Eligibility Age. These two numbers both represent the transition point from working life to retirement but serve different purposes for Singaporeans. Yet, it is crucial that we learn what the difference is and how to maximise both our employment and retirement income access.
Singapore’s Statutory Retirement Age
The statutory retirement age in Singapore is the minimum age at which an employer can require an employee to retire. This age is set according to the Retirement and Re-employment Act (RRA), and your company legally cannot ask you to retire before that age. The purpose of this law is to protect older workers from age-based discrimination, ensuring that they are allowed to work for as long as they are able and willing.
Currently, the statutory retirement age is 63. This was raised in July 2022, and the retirement age will be raised once again to 64 from 1 July 2026. This is part of the move to raise the retirement age to 65 by 2030.
| Year | Statutory Retirement Age |
| 1993 | 60 |
| 1999 | 62 |
| 2022 | 63 |
| 2026 | 64 |
| By 2030 | 65 |
According to the RRA, employers must offer re-employment to eligible employees who turn 63, up to age 68, to continue their employment in the organisation. The re-employment age will be raised to 69 from 1 July 2026, and is expected to be raised to 70 by 2030.
Read Also: What Is The Difference Between Retirement Age And Re-Employment Age In Singapore?
The CPF Payout Eligibility Age
The CPF payout eligibility age is the age at which you start receiving your monthly retirement payouts from CPF.
Currently, the CPF payout eligibility age is 65, which was set in 2018. This milestone has been gradually raised over the years, initially to correspond with the prevailing statutory retirement age. However, with the introduction of re-employment legislation in 2012, there was no longer a need to link the payout eligibility age to the retirement or re-employment age.
| Year | CPF Payout Eligibility Age |
| 1987 | 60 |
| 1999 | 62 |
| 2012 | 63 |
| 2015 | 64 |
| 2018 | 65 |
The Need To Raise Both Ages Over Time
The main reason for raising the retirement age and payout eligibility age is our increasing life expectancy. Singapore’s life expectancy at birth is now 83.5 years. It was 82.6 years a decade ago. As Singaporeans live longer, we will need more CPF savings to meet our retirement needs. By raising the retirement age, we can contribute more to our CPF accounts, reducing the risk of outliving our resources.
By introducing CPF LIFE, a national annuity scheme which provides lifelong monthly payouts, the government is also ensuring that all Singaporeans will continue to receive monthly payouts even when our CPF savings are depleted.
Read Also: Comparing The Oldest Retirement Ages In The World – And Where Singaporeans Stand
The statutory retirement age is intended to protect your right to work. It sets the minimum age at which your employer can require you to retire, but it does not force you to stop working. In fact, many Singaporeans choose to work past the retirement age through re-employment.
Re-employment allows older workers and their employers to work out a mutually beneficial arrangement, such as the opportunity to renegotiate a position better suited to their level of fitness, aspirations, and desired workload at this stage of their lives.
If your employer is unable to re-employ you, they can transfer the re-employment obligation to another eligible employer, depending on your acceptance of such an arrangement. Should you choose to turn down the offer, you will be entitled to an Employment Assistance Payment (EAP) from your employer. The EAP is intended as a last resort, as a one-off payment equivalent to 3.5 months’ salary, with a minimum of $6,250 and a maximum of $14,750.
Why The Difference In The Ages Matters
Because the CPF payout eligibility age and the statutory retirement or re-employment ages are not linked, you have the flexibility to decide when to stop working and when to start receiving your monthly payouts. In other words, you can choose not to receive your CPF monthly payouts at 65 years old, but defer them for up to 5 years, till the age of 70.
According to CPF, deferring your monthly payouts will increase the amount you receive by up to 7% per year. This means that if you choose to defer until the age of 70, your payouts will increase by up to 35%.
In other words, you can choose to work past the statutory retirement age of 63, through re-employment up till the age of 68, and then decide only to start your CPF LIFE monthly payouts at that age, enjoying an increase of up to 21% in your monthly payouts.
Alternatively, you can start receiving your CPF payouts at 65 while still in re-employment. This may give you the peace of mind you may need to accept a role offered by your employer that has fewer responsibilities but also a smaller remuneration.
Ultimately, the decision of when to retire is a personal one, influenced by health, financial needs, job satisfaction, and family circumstances. The flexibility on when to start your CPF payouts allows you to make the best choice for yourself regardless of when you decide to retire.
Read Also: Only 3 Ways For Singaporeans To Have Enough For Retirement: Save More; Spend Less; And Retire Later
