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No link between retirement age and CPF payout eligibility age

Employment practices
  • The Straits Times (4 April 2019):   Link between retirement age and CPF payout eligibility needs to be clearer

No link between retirement age and CPF payout eligibility age
- The Straits Times, 11 April 2019

  1. We thank Mr Bernard Lim Tiong Hien for his views on retirement issues (Link between retirement age and CPF payout eligibility needs to be clearer, April 4).
  2. Today, CPF members can instruct CPF Board to start their monthly retirement payouts at any time from age 65. This is independent of the statutory minimum retirement age of 62 or the re-employment age of 67. 
  3. As Manpower Minister Josephine Teo announced last month, the Tripartite Workgroup on Older Workers has come to a consensus that both the retirement and re-employment ages should be raised in small steps. She also said that the CPF Payout Eligibility Age of 65 will remain unchanged.
  4. Mr Lim was concerned about how to balance the need for a dynamic, Smart Nation economy while keeping older workers employed at the same level of seniority and pay.
  5. This involves helping all workers keep their skills relevant at every stage of their careers through the SkillsFuture initiative. Older workers also receive more support under the Adapt and Grow initiative to transit to new occupations or industries, so that they can continue to stay in employment or progress in their careers.
  6. Equally important, wage levels should reflect job size and competence more than seniority, and wage increases should not move unsustainably ahead of productivity growth.
  7. The current situation in Singapore is encouraging. Employment among seniors has risen steadily while unemployment has remained low. Although employers and older workers may mutually agree on adjustments to jobs and salaries, well over 90% of those who are re-employed have also retained the same job and pay.
  8. We should build on these foundations. The Government will continue to support senior employment through a range of schemes. These include the WorkPro Job Redesign, Age Management, and Work-Life Grants, which encourage employers to adopt age-friendly workplace practices and flexible work arrangements. The recently extended Special Employment Credit also provides wage offsets to employers hiring workers aged 55 and above.

Lim Tze Jiat
Director, Employment Standards & International Relations
Workplace Policy and Strategy Division
Ministry of Manpower

Link between retirement age and CPF payout eligibility needs to be clearer
- The Straits Times, 4 April 2019

  1. All Singaporeans facing retirement over the next 10 years will be concerned about the impact of the retirement age on their finances (Singaporeans should retire at 70, says Mercer boss, March 31).
  2. At present, there is an ongoing discussion on raising the retirement and re-employment age, with the Government agreeing to maintain at age 65 the opt-in arrangement for CPF payout eligibility.
  3. The authorities should clarify two points to let citizens make an informed choice.
  4. First, a temporary freeze on payout eligibility buys time, not assurance.
  5. The Government should clarify its policy stand on the link between retirement age and payout eligibility.
  6. Second, raising the retirement and re-employment ages should be accompanied with a significant and measurable commitment from public and private employers to cater more of their budget towards making such an adjustment.
  7. In the absence of these, most employers would likely use tools such as restructuring to refresh their talent pool.
  8. Furthermore, it is unclear at this stage how the Government will balance the need for a dynamic, Smart Nation economy while keeping older workers employed at the same level of seniority and pay.

Bernard Lim Tiong Hien