
Retiring from work is a very personal matter and it’s a decision that may impact our lifestyle. Therefore it’s important to carefully consider “when is the best time” for you to retire and enjoy the fruits of your labour. Let’s find out all we need to know about transitioning to this important stage of our lives in Singapore.
What’s the Retirement Age in Singapore?
Based on the Retirement and Re-employment Act (RRA)*, the minimum Retirement Age in Singapore is 62 years. What does this mean? You have the right to work until you’re 62 years old and it’s against the law for your company to ask you to retire before that age.
This protection has caveats which are:
- You are a Singapore citizen or a Singapore permanent resident
- Employed by your company before you turned 55
Am I able to continue working beyond the Retirement Age?
Yes! If you’re eligible, an employer must offer you re-employment until you’re 67 years old.
The eligibility criteria are below:
- You’re a Singapore citizen or Singapore permanent resident
- Have worked with your current employer for at least 3 years before turning 62
- Have satisfactory work performance, as assessed by your employer
- Medically fit to continue work
- Born on or after 1st July 1952
If you meet the above criteria, your re-employment contract should last at least 1 year and can be renewed annually up to age 67.
Just note that your salary might be adjusted based on factors such as new responsibilities or duties. It’s best to negotiate these terms with your employer when finalizing the re-employment contract at least 6 months before it comes into effect. Your employer should offer a re-employment contract at least 3 months before your retirement age, if you’re eligible.
Negotiating your re-employment with your employer can be a stressful and emotional process. Start discussions early and communicate your job preferences clearly. It may not be easy but try to be flexible and keep an open mind as there could be changes to your job arrangement or employment terms.
To encourage employers to re-employ workers aged 65 and above, the Singapore government offers Special Employment Credit (SEC) where an additional 3% of your monthly wages will be offset.
If your employer is unable to re-employ after turning 62 years old, they can transfer you to another employer if these two conditions are met:
- The new employer agrees to taking over the re-employment obligations from your present employer, AND
- You must agree to the re-employment offer by the new employer
You have the right to accept or reject the re-employment offer from the new employer. If you do reject, the Employment Assistance Payment (EAP) from your present employer will kick in.
What is Employment Assistance Payment (EAP)?
If all available re-employment options have been considered and your employer is still unable to find a suitable job for you, they may offer you an Employment Assistance Payment (EAP).
EAP is:
- Only offered as a last resort
- Meant to help you for a short-term period while you seek alternative employment
- A one-off payment equivalent to 3.5 months’ salary, subject to a minimum amount of $5,500 and maximum of $13,000
- In addition, your employer is encouraged by the Singapore government to provide outplacement assistance to help you find alternative employment
If you’ve been re-employed for at least 30 months since age 62, your EAP is:
- A lower amount of 2 months’ salary, subject to a minimum amount of $3,500 and maximum of $7,500
What help can I get if I have a dispute with my employer?
If you’ve tried your best to work together with your employer (or union, if applicable) to resolve any differences amicably but to no success, you can approach the Commissioner for Labour (COL) or Tripartite Alliance for Dispute Management (TADM) for help with the following situations:
- Not offered re-employment (to raise issue within 1 month after the last day of employment)
- Unreasonable terms and conditions or EAP amount
At Abundant Life Planners, we understand the importance of retiring comfortably and enjoying your golden years without any worries. Feel free to get in touch with us if you have any questions regarding your journey to retirement.
* Retirement and Re-employment Act - Singapore Statutes Online (agc.gov.sg), https://sso.agc.gov.sg/Act/RRA1993, 30 Aug 2021