Let’s ask… What is the significance of raising retirement age?

Here’s the common myth on raising the retirement age:

  • It is part of a sinister plan to keep your CPF money longer
  • The government doesn’t want you to retire

To start with, let us very swiftly kill these myths.

1.) The myth that CPF wants to keep your money longer is such stupid reasoning it makes no sense at all. It is an ah-beng’s argument based on no logic whatsoever. If you really think that the government operates as a mafia, then there is no need to devise such a complicated system such as the CPF at all. No need to worry about paying citizens high dividends.

2.) The government doesn’t “want” you to keep working. The government doesn’t care if you don’t want to work. But the situation on the ground, is that many people who approach the age of 55 are fast made redundant. As a consequence, those in their 40s are either locked into their jobs, or if they find themselves retrenched, almost impossible to find a job.

The unwilling parties in this negotiation, are actually the employers. So how does the country sweeten the deal?

Budget 2015 was developed with strong influence by the NTUC – the labour movement of Singapore. The additional “Special Employment Credit” incentives employers to hire workers aged 65 and above. Singaporean workers aged 65 and above who earn up to S$4k per month will get SEC to offset up to 11.5% of monthly wages in 2015.

The data is also promising 99 per cent – of private sector local employees who turned 62 in the year ending June 2014 were offered re-employment.

More than 9 in 10 eligible public officers who retired at age 62 were re-employed in the year ending 2013.

The current minimum statutory retirement age of 62 protects workers from below 62 from being dismissed on the grounds of age.

 

 

 

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About the author

Tay Leong Tan

Tay Leong Tan is a collective of 3 writers. Tay, Leong and Tan. (Who were you expecting?!) We are enthusiastic about labour issues, economics and current affairs in particular.

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