Singapore-based financial blog that aims to educate people on personal finance, investments, retirement and their Central Provident Fund (CPF) matters.

Sunday, 30 August 2015

Raising of Re-Employment Age to 67

12:46 Posted by cheez , 2 comments
Today, we will be talking about the raising of Re-Employment age.
More links below on Retirement

MORE LINKS
5 Financial Things to do in your 20s
Singapore Finance Minister on Personal Finance Part 2
Reducing CPF Housing Accrued Interest
CPF +1% Interest for those age Below 55
Everyone Should Invest to Retire
You NEED Stocks to Retire
Reaching Full Retirement is Tough Work
Steps to help you reach Retirement

During this year's National Day Rally, PM Lee mentioned that the Re-employment age will be raised from 65 to 67 by 2017.

When people tell me that the Government is insane, making us work more and more, consistently pushing the retirement age backwards, my response to them is as per below:

There is a difference between Retirement Age and Re-Employment Age.

RETIREMENT AGE (Singapore's minimum retirement age is set at 62)
The age most people stop working - in some cases, by law.
What it means is, companies cannot force you to retire before you reach your retirement age.
However, this is not the age that you must work to.
If you strike lottery at the age of 30, you can quit your job and enjoy for the rest of your life!

RE-EMPLOYMENT AGE (Singapore's re-employment age is currently set at 65)
Companies are required by law (in Singapore) to hire their workers (those who reach retirement age of 62) until the Re-Employment age of 65 if the worker wishes to continue working.
If you do not wish to continue working at age 62, you may just retire from your job (or quit).
This is done to ensure that older workers who wishes to continue working do not get forced into retirement by their employers.
Plans to raise the Re-Employment age to 67 are set to kick in in 2017.

Share this knowledge with your family and friends who tell you that the Government is making them work until 67!
Sharing is Caring!

Remember to offer your opinions. If you don't put your two cents in, how can you expect to get change?

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2 comments:

  1. I think the main concern is that CPF payout eligibility age might be postponed to 67 as a result.

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    Replies
    1. Hi Betta,

      I think the extending of CPF eligibility payout is a way to "force" Singaporeans to work longer beyond the "stated retirement age".
      I guess we have to (mathematically and financially)
      We posted about it here: http://investmentstab.blogspot.sg/2015/05/reaching-retirement-is-tough.html
      As we live longer, either we work longer for the same amount of retirement income or we take a smaller retirement income
      Sadly there isn't a choice between the 2.
      The choice is pretty much set at "work longer"

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