Manpower Minister Tan See Leng announced the changes in Parliament on March 3, telling lawmakers the move “will give our seniors more flexibility and assurance, while enabling employers to retain experienced workers,” The Straits Times reported.
Re-employment refers to the age until which employers must offer eligible workers continued employment.
Singapore’s push to extend working lives reflects a demographic reality facing much of Asia: people are living longer, birth rates are falling, and governments are rethinking when work should end. The city-state now ranks fifth among OECD nations for labor force participation by workers in their 60s, according to MustShareNewsciting parliamentary data.
Senior Minister of State for Manpower Koh Poh Koon said in a separate speech that the policy changes are already showing results. More than 9 in 10 eligible employees who wish to keep working are offered re-employment, he said. Over the past five years, labor force participation among residents in their 60s has edged up from around 58% to nearly 60%, and from 79% to 82% among those in their 50s, Channel NewsAsia reported.
“These changes matter because they do more than set legal limits. They shape social norms around ageing and work,” Koh told Parliament.
To ease the cost burden on employers, the government will extend the Senior Employment Credit and the Part-Time Re-Employment Grant through December 2027, providing wage offsets for companies that retain senior workers, The Straits Times reported.
Boosting retirement savings
The government is also using the Central Provident Fund (CPF) system, Singapore’s mandatory savings scheme, to strengthen retirement adequacy.
From 2027, CPF contribution rates for workers aged 55 to 60 will rise by 1.5 percentage points, while rates for those aged 60 to 65 will increase by 1 percentage point. This will bring Singapore to the target contribution rates recommended by the Tripartite Workgroup on Older Workers, a body formed in 2018 to develop policy on aging and employment, according to the Ministry of Manpower.
To offset higher business costs, the CPF Transition Offset will be extended through 2027, covering 50% of the increase in employer contributions.
The government also announced a one-time CPF top-up of up to S$1,500 (US$1,180) for eligible individuals aged 50 and above with lower balances, as part of Budget 2026, Human Resources Online reported.
In a move aimed at less experienced investors, the CPF Board will launch a new investment scheme in the first half of 2028 offering simplified, low-cost life-cycle products, Tan told Parliament.
Unlike the existing CPF Investment Scheme, which gives members access to a wide range of instruments, the new option will manage investments along a “glide path,” gradually reducing exposure to riskier assets as investors age.
Tan said providers will be selected through rigorous evaluation by independent consultants, with capped fees to keep costs low. The scheme will be voluntary.
He was responding to a question from Saktiandi Supaat (Bishan-Toa Payoh GRC) on the selection process. Tan also agreed with Shawn Loh (Jalan Besar GRC) and Nominated MP Sanjeev Kumar Tiwari that investor literacy would be critical, telling Parliament that members “must understand the products and their risks.”
Planning for longer careers
Beyond policy tweaks, Singapore is rethinking what a career looks like when it spans five decades.
Koh told Parliament that Workforce Singapore and its partners have piloted career guidance programs for workers in their 50s and 60s, with around 1,000 people going through the programs so far. The agency plans to scale these up and embed them into its regular offerings, The Straits Times reported.
A Tripartite Workgroup on Senior Employment, convened in July 2025 by MOM together with the National Trades Union Congress and Singapore National Employers Federation, is studying a more integrated approach. This includes the possibility of a dedicated center for career longevity that would bring service providers together to develop solutions for longer, multi-stage careers.
The workgroup will release its report in the second half of 2026.
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