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The recent study shows that raising Singapore’s retirement and re-employment ages has successfully kept senior workers in the workforce, with the 2022 increase in re-employment age proving just as effective as the 2017 change.
In 2022, Manpower Minister Tan See Leng announced amendments to Singapore' Retirement and Re-employment Act, setting the maximum statutory retirement age (RA) at 65 and the re-employment age (REA) at 70 by 2030. This move, based on recommendations from the Tripartite Workgroup on Older Workers, signalled not only a policy shift but also recognition of the value that senior workers bring to Singapore’s economy.
Companies such as SATS and NTUC have since followed suit, raising their own retirement ages ahead of the national schedule.
A new study by the Ministry of Manpower examined the impact the 2022 increase in the RA and REA on the employment outcomes of senior workers. The results revealed that the increase in RA and REA raised the employment rates of senior workers, thus suggesting that they had been effective in keeping senior workers in the workforce.
For the REA, the positive impact of the increase in 2022 on employment was similar to that found for the earlier increase in 2017 (when the REA was raised from 65 to 67), suggesting that the policy of raising the REA had not reached diminishing returns.
Impact of the 2022 increase in RA and REA on senior employment
RA
The 2022 increase in the statutory retirement age (RA) from 62 to 63 raised the employment rate of senior workers in the treated group by 0.4 percentage points compared to the control group. However, this effect was not sustained beyond the new legislated RA of 63. The RA increase also had no impact on the semi-treated group.
This suggests that the RA influences employment mainly through legislative protection, rather than social norms. Two groups of senior workers particularly benefitted:
- Those who would have been retired at 62 if not for the new RA.
- Those earning more than the re-employment offer, who would otherwise have left at 62 but could now continue on their existing package until 63.
There was no evidence that the RA influenced retirement decisions through social expectations, as most seniors anchored their decisions on the higher re-employment age (REA).
The impact also varied across groups:
- By sector: The increase had a stronger effect in outward-oriented, knowledge-intensive sectors, where firms tended to retire older workers at the RA.
- By housing type: Seniors living in executive flats, condominiums, or apartments saw larger gains, as they were more likely to have retirement adequacy and thus less willing to accept lower re-employment terms. The new RA allowed them to remain employed longer on their existing packages.
REA
The 2022 increase in the REA from 67 to 68 raised employment rates of the treated group by 0.7 percentage points compared to the control group. Similar to the RA increase, the effect did not persist beyond the new legislated age of 68.
While this study could not fully assess the semi-treated group in 2022, analysis of the 2017 REA increase (from 65 to 67) showed positive effects on semi-treated workers. This suggests that changes in the REA may also influence retirement through social norms — with workers anchoring their decisions on the legislated age.
Key insights:
- The positive impact of the 2022 REA increase was similar to that of the 2017 increase, indicating no diminishing returns. Many seniors who worked up to the old REA were still willing and able to work beyond it.
- The REA increase had a slightly larger effect on employment than the RA increase. This aligns with policy design: while the RA offers baseline protection, the REA plays a stronger role in extending careers, since employers must continue offering re-employment contracts to eligible workers.
In short
At their current ages, the RA and REA remain relevant in providing both legislative protection and social norms around retirement, allowing senior workers the choice to extend their careers. This not only supports their financial security but also helps employers meet manpower needs in a tight labour market.
Looking ahead, the Government has convened the Tripartite Workgroup on Senior Employment and launched the Alliance for Action on Empowering Multi-Stage Careers for Mature Workers. These efforts aim to
- Empower senior workers to be productive and employable, and
- Promote age-friendly jobs and workplaces.
Together with the phased increases to the RA and REA, these initiatives are designed to unlock the full potential of Singapore’s senior workforce — ensuring that the silver generation remains an enduring pillar of economic growth.
Methodology
The study exploited the eligibility cutoff for the new RA and REA implemented in 2022 to identify the causal impact of the increases. Specifically, the RA increase (from 62 to 63) and REA increase (from 67 to 68) in July 2022 meant that only senior workers born on or after 1 July 1960 (RA) and 1 July 1955 (REA) were directly affected.
Based on this, three groups of seniors were identified:
- Treated group: Workers who directly benefitted from the extended legislative protection provided by the increased statutory ages (i.e., born on or after 1 July 1960 for RA, and on or after 1 July 1955 for REA). These workers could also be indirectly affected through changes in social norms of retirement, as they might re-anchor their retirement decisions to the new statutory ages, while employers could adjust hiring expectations and be more willing to employ senior workers for longer.
- Semi-treated group: Workers born in the same year as the treated group but not directly affected by the statutory age increases (i.e., no legislative protection) due to the timing of policy implementation (born before July). Nonetheless, they could still be influenced indirectly through the social norms channel.
- Control group: Workers born in the year just before the treated and semi-treated groups. This group was unaffected by the increases in statutory ages and served as a baseline for comparability.
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