Singapore Prime Minister Lee Hsien Loong announced plans to raise the country's retirement age to 65 from 62 over the coming decade or so, among other measures needed to take account of the city-state's ever-longer lifespans.
In a National Day speech Sunday, Mr. Lee said life expectancy for Singaporeans born today stands at nearly 85 years, "the longest in the world."
The prime minister said his government has accepted "in full" recommendations made by a Ministry of Manpower Workgroup on Older Workers, aimed at allowing Singaporeans to work longer and save more along the way for retirement.
Mr. Lee said contribution rates to employee mandatory Central Provident Fund accounts — which under present rules come to a combined 37% of wages, split 17% from the employer and 20% from the employee, for workers 55 and younger — begin to taper off thereafter.
From above 55 through 60, contributions by employers and employees alike drop to 13%, and eventually stabilize at 7.5% for employers and 5% for employees who are older than 65.
Mr. Lee said over the coming decade or so the full 37% rate of contributions will be extended through age 60, before tapering off.
Over the same period, the "re-employment age" — by which employees who choose to work beyond retirement age are guaranteed employment in their organizations for a period of time — will be raised to 70 from 67 now.
Mr. Lee said in 2022, an initial step will raise Singapore's retirement age to 63 from 62, with additional increments lifting the age to 65 by 2030.
