Singapore – While the trend to delay the overall workforce’s retirement age is set to continue globally, not all Singaporean employees, particularly the Y generation, are prepared for retirement.

Singaporeans aged 21 to 34 years old are especially vulnerable as only 48% surveyed see themselves as somewhat prepared for retirement and less than 1% are very prepared, Tsao Foundation-TNS Ageing Preparedness Survey reveals. Hence, generation Y employees can be expected to work beyond the proposed retirement age of 62 years as only 56% of respondents are currently saving a bit but unsure if it is enough. However, Dr Mary Ann Tsao, president of Tsao Foundation, believes being well prepared for retirement applies to employees across all age groups, not just the generation Y cohort. In fact, she stressed that it is more dependent on the individual’s “income over the years, years in employment, the ability to save, as well as, the desire to work”.

In other words, for 79% of Singaporeans who plan to be financially independent during their last years, it is time to save consistently throughout their working lives. Yet the desire to continue working beyond the fixed retirement age is more important. Besides keeping the mind sharp and body fit, Dr Tsao explains the additional income from working after retiring “would give employees greater financial security and ability to maintain a certain lifestyle”.

With the local government aiming to raise the current retirement age to 67 years in anticipation of the increasing aging population, companies can do more in terms of their retention strategies for mature employees. While there are legislative plans for employers to offer reemployment to retired workers, Dr Tsao says it really depends on the business’ work and staff requirements. “The key is for companies to shed any prejudices or pre-formed mindsets about older workers.”

Although Dr Tsao admits the job scope or pay may differ for the mature worker, she maintains that companies can simply “think out of the box to see how they can use the talents of their staff, regardless of their chronological age”.

Once companies learn to appreciate the wealth of experience the mature employee brings, they will be at an advantage to capitalise when the pool of younger workers shrinks. Dr Tsao says, “The employment of more mature workers is both as a source of manpower, as well as, [gaining] the knowledge and experience.”