Singapore’s retirement age is rising to 64 — and re-employment age to 69 — starting July of next year. You will need a comprehensive HR software in Singapore that lets you track eligibility and manage transitions properly.
Why is Singapore increasing its retirement age?
Singapore is progressively raising both the retirement age and re-employment age to support longer life expectancies.
Here’s are the changes you need to note:
| Date | Retirement age | Re-employment age |
| Current (since July 2022) | 63 | 68 |
| Starting 1 July 2026 | 64 (born on or after 1 July 1963) | 69 (born after 1 July 1958) |
| By 2030 | 65 | 70 |
These adjustments help your organisation keep experienced employees longer and improve financial stability for seniors. Using HR software in Singapore will make it easier to ensure fair pay and compensation for everyone.
Retirement and re-employment framework from MOM
To comply with MOM guidelines, your HR teams must understand how retirement age differs from the re-employment age, and how each affects workforce management.
The retirement age is the earliest point at which you may end employment based solely on age. You’re not allowed to dismiss an employee for age-related reasons before they reach this statutory minimum.
Meanwhile, the re-employment age sets the upper limit for how long eligible employees can continue working if they wish to do so. Employers must offer re-employment to those who meet MOM’s criteria — including satisfactory performance, medical fitness, and at least three years of service — allowing them to stay on beyond the retirement age, up to the re-employment ceiling.
Senior Employment Credit (SEC)
Through the Senior Employment Credit, you can get support that offsets wages when you hire or retain older Singaporean workers. The support is greater when your employees are in older age groups, allowing your business to adapt to the rising retirement and re-employment ages.
SEC eligibility
You may qualify for SEC payouts (for wages from 2023 to 2026) if you hire:
- Singapore Citizens aged 60 and above
- Employees for whom mandatory CPF contributions are made on time
- Employees earning below S$4,000 per month
For wages paid between 1 January 2024 and 31 December 2026, you can receive up to 7% wage offsets depending on the employee’s age and salary.
The 2025 Budget extends SEC support into 2026, and you’ll need to adjust your payroll settings accordingly. Employees turning 69 in 2026 now qualify for the highest support tier (up from 68 last year).
Does retirement age affect CPF contributions?
CPF contribution rates are based on age bands and not the statutory retirement age. However, you need to consider both when managing older employees. If someone remains employed past the retirement age, you must apply the CPF rate that matches their age group — including reduced rates for employees above 55, 60, 65, and 70 — to remain compliant.
What happens to CPF at age 55?
Turning 55 is a key milestone for CPF members. At this point, CPF restructures savings to prepare for retirement and opens up limited withdrawal options.
- Once your employee turns 55, CPF automatically sets up a Retirement Account (RA) and begins moving savings into it.
- Funds from the Special Account (SA) and/or Ordinary Account (OA) are transferred into the RA, up to the Full Retirement Sum (FRS).
- The RA earns the same long-term interest rate that previously applied to the SA.
Employees can start withdrawing some of their CPF savings from age 55, depending on how much savings they’ve built up.
- Between ages 55 and 65, any new CPF contributions go into the RA until the FRS is fully met. After that, contributions are directed to the OA, which the employee can access for withdrawals.
- If FRS is not met, employees may still withdraw up to S$5,000 from their OA. Any remaining balance stays in the RA to support retirement payouts.
The Enhanced Retirement Sum has been raised to twice the FRS in January 2025. Employees aged 55 and above can now top up more voluntarily to increase future payouts.
CPF contribution rate changes after 55
Once employees turn 55, CPF contribution rates are gradually reduced. Contributions are split between the RA, MediSave Account (MA), and OA according to CPF’s age-based tiering system. Accurate tracking is essential to avoid underpayment or compliance errors.
Streamline retirement management in your organisation
Rising retirement and re-employment ages combined with regular CPF updates can place a significant compliance load on your HR teams. Adaptive Pay helps reduce this burden by providing a reliable HR software solution for your Singapore business. Our all-in-one cloud HRMS is continuously updated to reflect MOM and CPF changes, making payroll management for senior employees more accurate and stress-free.
Contact us for a demo and discover how our HR software in Singapore can support your organisation.
