Singapore’s Retirement Age Is Rising, New Workforce Rules to be Applicable From 2026

In a major policy shift aimed at strengthening employment opportunities for older workers, the Singapore government will raise the retirement age to 64 and the re-employment age to 69 from 2026. Announced during the Ministry of Manpower’s Committee of Supply (COS) debate for 2024, these changes are part of a national plan to adapt the workforce to a rapidly ageing population.

The current retirement age stands at 63, with the re-employment age at 68. The upcoming change reflects a broader strategy to ensure older Singaporeans remain active and financially secure, while contributing meaningfully to the economy.

Long-Term Plan to Raise Age Limits by 2030

The 2026 update is just one phase of a larger roadmap. By 2030, the retirement age will rise to 65, and the re-employment age will reach 70, representing a long-term shift in how Singapore supports workforce participation among seniors.

Year	Retirement Age	Re-employment Age
Current	63	68
2026	64	69
2030	65	70

This phased approach allows both employers and workers time to adjust, offering predictability and structure as the labour market evolves.

Why the Retirement and Re-employment Ages Are Increasing

The government’s decision to adjust these age thresholds is backed by a mix of demographic, economic, and social factors:

• Ageing Population: With more citizens living longer and remaining capable of working, the policy enables them to stay employed and financially stable.
• Economic Value of Seniors: Older workers bring years of experience, reliability, and mentorship to the workplace—valuable traits that help businesses and younger colleagues alike.
• Financial Security: Extended employment reduces reliance on personal savings or public assistance, improving quality of life post-retirement.
• Greater Flexibility: The policy encourages flexible work arrangements, which are especially beneficial for senior employees looking for work-life balance.

Financial Support for Employers: Two Key Grant Schemes

To help businesses adapt to these changes, the government has introduced financial support initiatives aimed at reducing costs and promoting flexibility for senior employment.

Part-Time Re-employment Grant (PTRG)

The PTRG offers financial incentives to companies that re-employ senior workers in part-time or flexible roles. It supports businesses that restructure work arrangements to meet the needs of an ageing workforce.

• Grant Amount: Companies can receive up to S$125,000.
• Eligibility: Available to employers offering part-time or flexible work arrangements to workers aged 60 and above.
• Per-Employee Support: Employers receive S$2,500 per eligible senior worker, up to the company-wide cap.

By helping offset the cost of re-employment, this grant empowers businesses to retain valuable senior talent while offering older workers more choice in how they stay involved in the workforce.

Senior Employment Credit (SEC)

The SEC provides wage offsets to employers who hire or retain senior workers earning up to S$4,000 per month. It is designed to ensure that age is not a barrier to full-time employment.

• Wage Offset: Up to 7% of monthly wages, depending on the age of the employee.
• Eligibility: Full-time employees aged 60 and above earning S$4,000 or less.
• Objective: Encourages employers to hire and retain older workers, promoting a diverse and inclusive workforce.

This initiative plays a key role in easing the financial burden on businesses while promoting long-term workforce participation among seniors.

National Benefits of Retaining Older Workers

The revised retirement and re-employment policies align with Singapore’s broader economic and social goals. Keeping older workers active in the workforce offers several advantages:

• Economic Resilience: Seniors contribute to productivity, reduce skills shortages, and enhance team dynamics.
• Reduced Pressure on Social Programs: Continued employment reduces reliance on state-funded pensions and subsidies.
• Workplace Diversity: Longer careers lead to multi-generational teams, creating environments rich in knowledge-sharing and inclusive culture.

These changes signal a paradigm shift in how Singapore views ageing and employment, placing emphasis on empowerment rather than disengagement.

Encouraging Employers to Embrace Workforce Transformation

The government’s support is designed not only to alleviate financial risk for employers but also to transform mindsets about ageing in the workplace. The message is clear: age should not limit opportunity.

By pairing policy changes with grants and credits, businesses are encouraged to:

• Review and adapt HR policies
• Offer part-time roles, phased retirements, or job redesign
• Create mentorship opportunities for older employees
• Build workplaces that embrace age as a strength, not a liability

Preparing for the 2026 Rollout and Beyond

With the first wave of changes coming in 2026, employers and employees alike must prepare for the new reality of extended work life.

For employers:

• Begin reviewing workforce demographics
• Assess eligibility for PTRG and SEC
• Implement training programs tailored for senior workers
• Consider workplace redesigns for accessibility and ergonomics

For employees:

• Understand retirement timeline shifts
• Discuss flexible work options with employers
• Plan finances with extended re-employment in mind
• Explore government-funded re-skilling or upskilling programs

Preparation today will ease the transition and maximize the opportunities this policy presents.

Singapore’s Commitment to an Age-Inclusive Economy

The decision to raise the retirement age to 64 and re-employment age to 69 by 2026 reflects a strong national commitment to inclusivity, sustainability, and productivity. Rather than phasing out older workers, Singapore is empowering them to stay relevant and secure.

With rising life expectancy and improved health outcomes, these measures represent a forward-looking approach—one that embraces demographic reality while future-proofing the economy.

The supporting programs, including the Part-time Re-employment Grant and Senior Employment Credit, are designed not just to offset costs, but to foster a culture of respect and opportunity for senior workers.