Singapore is increasing its retirement age in 2025 and after that, and the results of Central Provident Fund (CPF) contributions and pensions would change considerably. Since 1 July 2025, the legal retirement age of most industries starts to change towards 64, with additional changes to 65 by 2030. The age of re-employment will also increase to 68 by 2025 to 69 providing older employees with more freedom and wealth as they grow older.
Significant Retirement Age and Re-employment Reforms
– Retirement age will rise to 63 to 64 years in 2025; the new limit will be enforced in the public sector and on some unionized workplaces starting July 2025, and others starting in 2026.
– The age of re-employment will rise to 68 to 69 in July, 2025 with a project to shift to 70 in 2030.
– The Retirement and re-employment act which safeguards the people in the older age bracket against unfair dismissals based on their age alone and provided them with the guaranteed statutory employment rights.
Impact on CPF Contributions
– The contribution rates of the CPF of older employees between the age of 55 to 65 years will be contributed progressively.
– As of 1 January 2025, the wage limit on the CPF contribution increases to S$7,400 per month, increasing the savings of middle and higher-income earners.
– Proposed rate increase starting Jan 2026:
– Age 55–60: rises from 29.5% to 31%
– Age 60–65: rises from 20.5% to 22%
– Age 65–70: rises from 15% to 16.5%
– Age >70: remains at 12.5%
– These improvements allow older workers to accumulate larger retirement benefits, which receive increased monthly payout in CPF LIFE pension schemes.
Retirement Sums and Pension Benefits
– Basic Retirement Sum (BRS) will rise to S$105,000, Full Retirement Sum (FRS) to S$210,000 by 2025, the CPF members will get a higher monthly payout upon retirement.
– CPF LIFE monthly payments will be enhanced since the workers will have additional years to pay and accumulate savings.
– Longer working years will allow the elderly to save, re-train and stay sociable, whereas the self-employed will have the option of new flexibilities on CPF contributions and monthly pension payments.
Transitional Support by the Government
– Senior Employment Credit (SEC) and Part-time Re-employment Grant (PTRG) provide employers with financial incentives to retain and hire seniors particularly in flexible or part-time positions.
– Upskilling and inclusive working programs will promote successful ageing and financial independence through encouraging the seniors to be productive and stay engaged.
Summary Table: Singapore Retirement Age & CPF Changes 2025
| Item | 2024 | 2025-26 | 2030 Target |
|---|---|---|---|
| Statutory Retirement Age | 63 | 64 (from July 2025) | 65 |
| Re-employment Age | 68 | 69 (from July 2025) | 70 |
| CPF Contrib. Rate 55–60 | 29.5% | 31% (Jan 2026) | – |
| CPF Contrib. Rate 60–65 | 20.5% | 22% (Jan 2026) | – |
| CPF Wage Ceiling | S$6,800/month | S$7,400/month | – |
| Basic Retirement Sum (BRS) | S$99,400 | S$105,000 | – |
| Full Retirement Sum (FRS) | S$198,800 | S$210,000 | – |
FAQs
Q1: What will be the retirement age in Singapore, in 2025?
It is officially increasing to 64 years, both in the case of the public sector and certain industries since July 2025.
Q2: What is the variation of CPF contribution rate among the elderly employees?
The rates go up to 29.5 to 31 (age 5560) and 20.5 to 22 (age 6065) in 2026, and CPF wage ceiling goes up in 2025.
Q3: Will the workers receive more retirement amounts and payouts?
Yes, the long work years and higher CPF contributions lead to higher payouts according to CPF LIFE scheme.
