Singapore is taking another bold step to future-proof its ageing workforce. Beginning in 2026, significant reforms will come into effect—raising the statutory retirement and re-employment ages while increasing CPF contribution rates for older workers. This is not just a policy shift—it’s a move that reflects changing demographics, workforce dynamics, and a growing need for long-term financial security among citizens.
Announced by the National Trades Union Congress (NTUC), these changes are being implemented ahead of the national schedule, showing a strong commitment to adapting to an ageing society. It also marks the second time NTUC has fast-tracked retirement-related changes since 2019.
What’s Changing in Retirement and Re-employment Age?
The current official retirement age in Singapore is 63, with a re-employment age of 68. However, these thresholds are set to rise again in 2026. This is part of a broader government plan to gradually increase these ages by 2030.
From January 2026, the following changes will take place:
| Policy | Current Age | New Age (from 2026) |
|---|---|---|
| Retirement Age | 63 | 65 |
| Re-employment Age | 68 | 70 |
This means that employees who reach the age of 63 after January 2026 will not be required to retire until they turn 65. And employers will be expected to offer re-employment opportunities up to age 70, assuming the individual is willing and medically fit to continue working.
These changes give Singaporeans more time to remain in the workforce, continue saving for retirement, and contribute to society.
Why This Matters to You
The retirement age increase doesn’t just extend working years—it also offers greater financial resilience. Many older workers still want or need to work, and these changes give them more opportunity to do so, legally and securely.
With longer working lives, Singaporeans will have:
- More time to build CPF savings
- Extended access to employer healthcare or benefits
- Increased retirement payouts later in life
At the same time, re-employment safeguards ensure that seniors are not forced out of the job market once they hit traditional age limits.
CPF Contribution Rates: Key Updates from 2026
To match the rise in retirement age, the Central Provident Fund (CPF) will also see significant changes. Contribution rates will be increased for workers aged 55 and above, helping them save more in their golden years.
| Age Group | Current CPF Rate | New Rate (from 2026) |
|---|---|---|
| 55–60 | 26% | 37% |
| 60–65 | 16.5% | 26% |
| 65–70 | 12.5% | 16.5% |
The enhanced contributions will be largely channeled into the Special Account (SA), which earns a higher interest rate, thus helping members build a more secure retirement fund.
These changes will be implemented in phases, giving employers and employees time to adjust to the new structure.
What Employers Need to Prepare For
The CPF increase means that employers will contribute more per employee aged 55 and above. This naturally raises business costs, particularly in industries with a larger ageing workforce.
To support this transition, the government has introduced targeted assistance programs aimed at easing the financial burden on businesses while continuing to encourage senior employment.
Two of the key support schemes include:
Part-Time Re-employment Grant (PTRG)
This grant supports companies that offer flexible or part-time jobs to senior workers aged 60 and above. It’s especially relevant in a post-pandemic world where flexibility is valued across all age groups.
- Up to S$125,000 per company
- S$2,500 per eligible employee
- Encourages companies to adopt flexible work arrangements
Senior Employment Credit (SEC)
The SEC gives wage subsidies to companies hiring workers aged 60+. It’s designed to offset the additional CPF contributions and maintain competitiveness for senior job seekers.
- Wage support of up to 7%
- Applicable for workers earning up to S$4,000/month
- Helps reduce hiring cost for older employees
Employers should start reviewing their HR policies and cost structures to integrate these changes by 2026. Planning ahead will ensure compliance and access to government assistance.
How These Reforms Impact Singaporeans
For employees, especially those nearing retirement, the raised retirement and CPF contribution thresholds offer greater peace of mind. People now live longer and healthier lives, and this system encourages active ageing and financial preparedness.
For younger generations, the reforms strengthen the overall sustainability of the CPF system, ensuring that adequate support remains available in the decades ahead.
For businesses, the policy encourages a diverse workforce and leverages the experience and maturity of senior employees while being supported through government incentives.
FAQs
What is the new retirement age in Singapore from 2026?
Starting in 2026, the retirement age will be raised to 65, up from the current age of 63.
What does re-employment age mean?
Re-employment age refers to the extended period where employers must offer continued employment (usually part-time or contract) to eligible older workers after the official retirement age.
Will all CPF members see an increase in their contribution rates?
Only members aged 55 and above will see increased CPF rates starting in 2026.
How do the CPF changes help older workers?
Higher contribution rates help build more retirement savings in the CPF Special Account, offering higher interest and financial security.
Are these changes mandatory for all companies?
Yes, all employers in Singapore are required to comply with the new retirement and CPF contribution rules starting 2026.
How can companies afford the extra CPF contributions?
Support schemes like the Senior Employment Credit (SEC) and Part-Time Re-employment Grant (PTRG) offer financial relief to help businesses manage the transition.
Do employees need to apply for re-employment?
No, employers are required by law to offer re-employment to eligible workers who meet the criteria (e.g. satisfactory work performance and good health).
What should employees do to prepare?
Older employees should monitor CPF account balances, attend financial planning seminars, and explore part-time or hybrid job options post-retirement age.
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Aanchal is a passionate writer with a keen interest in storytelling, content creation, and creative expression. She enjoys exploring diverse topics and crafting engaging narratives that captivate readers.