Albert (not his real name) lives in Ang Mo Kio, one of Singapore’s seven “super-aged” districts, with over 21 per cent of its inhabitants aged 65 and above. At the age of 74, Albert still regularly jogs in Bishan-Ang Mo Kio Park. Despite remaining physically active and mentally sharp, Albert retired aged 65 in 2016, the maximum re-employment age at the time. He could have easily kept working.

Albert’s story is not unique. Today’s seniors are healthier, sharper, and more up to date than their counterparts of just a generation ago. A study from the Global Burden of Disease in 2019 indicated that Singaporeans enjoyed a health-adjusted life expectancy (HALE) of nearly 74 years – meaning that on average, Singaporeans back in 2019 could expect 74 years of good health and alertness. As for Singapore’s life expectancy, this is currently at 83 years. Yet, it appears that the laws on retirement and re-employment are not keeping pace.

Singapore’s Retirement and Re-Employment Act (RRA) protects older employees from age-based dismissal before reaching the minimum retirement age (currently 63). It also requires employers to offer re-employment or make an Employment Assistance Payment (EAP) to eligible senior employees – those medically fit with satisfactory work performance – up to the maximum re-employment age (currently 68). Importantly, re-employment does not have to be on the same terms. Employees can also continue working beyond the maximum re-employment age, but employers have no further obligation to offer re-employment or pay EAP thereafter.

The retirement and maximum re-employment ages are set to gradually increase to 65 and 70 respectively by 2030 – with no plans to increase them further. But that would mean the maximum re-employment age in 2030 will be four years behind what Singapore’s HALE was more than a decade earlier, in 2019.

“Help! Our Workforce is Shrinking!”

In 2023, Singapore’s total fertility rate fell below 1 for the first time, placing it amongst the countries with the lowest birth rates globally. “With fewer births, we will face a shrinking workforce,” Indranee Rajah, Minister in the Prime Minister’s Office, said in Parliament in 2024. Elaborating on this recently, she cautioned: “As our local workforce growth slows, it will be increasingly challenging to sustain economic growth and maintain a dynamic economy. There will be fewer young people to support a growing elderly population.”

This inverting population pyramid will significantly impact our economy. To help alleviate the workforce crunch, the government has been raising retirement and re-employment ages in tandem. However, even if that continues, increasing the retirement age assumes everyone can and wants to work longer, when ageing affects individuals differently – some may wish to scale back or retire outright earlier, while others can and want to still contribute well into their 70s.

With the upcoming Workplace Fairness Act, to avoid allegations of discrimination, employers may also feel pressured to retain older employees in their same roles until at least the statutory retirement age, even if these employees are no longer willing or able to work at full capacity.

Instead of continuing to raise the retirement age therefore, one solution could be to keep the retirement age at 65 – once it reaches that – while extending the maximum re-employment age in stages beyond 70, potentially up to 75.

“What? I Can’t Retire?”

Some have argued that increasing the maximum re-employment age means forcing individuals to delay retirement. That’s not the case. Extending the maximum re-employment age isn’t about pressuring anyone into prolonged employment. People can still retire at the retirement age or whenever they want. It’s about expanding choices for individuals who want to continue working while giving them the ability to renegotiate their re-employment terms.

Many are also concerned with the issue of financial security and rising medical costs. A recent CNA article noted that knee implants that cost around S$3,000 just a decade ago have close to doubled in price today. WTW, a global advisory and consulting firm, reported a projected 12 per cent increase in medical insurance costs in Singapore in 2025 alone.

Beyond finances, mental health issues like depression and loneliness also disproportionately affect older Singaporeans, with one-third perceiving themselves as lonely, according to a Duke-NUS Medical School study. Early retirement also contributes towards the isolation and social disconnection of our seniors, Think Psychological Services shared with CNA.

There are some clear societal benefits to a workforce that continues to be engaged for longer. Older workers can contribute critical knowledge and mentorship. A diverse workforce, including those of differing ages, can drive innovation and strengthen team dynamics. Staying gainfully employed also provides seniors with greater financial security, as well as mental and social stimulation, allowing them to stay engaged, healthy and contributing to Singapore for longer, while at the same time reducing stress on our healthcare system.

“Is 75 the new 65?”

Employers have expressed concerns. Heng Chee How, Senior Minister of State and National Trades Union Congress Deputy Secretary-General, told The Straits Times that businesses worry about skills gaps, increased medical expenditure, as well as the reluctance of older workers to engage in upskilling programs.

There may be practical ways to manage business costs – such as flexible work arrangements, government support schemes, and fair wage adjustments. But perhaps a paradigm shift in how we perceive older workers is also needed.

Ageism remains one of the last stubborn bastions of discrimination. Viewed against the backdrop of an ageing population, it’s welcome that the upcoming Workplace Fairness Act makes age the first of its protected characteristics. And it doesn’t stop there; it even allows employers to effectively practice affirmative action on grounds of age, by favouring older employees – those aged 55 and above – over younger ones.

Moving from an age-centric view to a capability-oriented model will help unlock the considerable reservoir of talent within our ageing population.

With longer lifespans, “[w]e are likely to have multiple career switches and transitions across different stages of life,” said Prime Minister Lawrence Wong in a video posted on social media in November 2024, which will “require a different form of life management”.

The view that older workers are less adaptable or unwilling to upskill is increasingly outdated. Many seniors are eager to take on new challenges, mentor younger workers and bring fresh perspectives to their roles if given the opportunity. They just need that chance to keep contributing.

For people like Albert, extending re-employment could be a way of adding life to his years and perhaps also years to his life. We can help people like him, and ourselves in the process. This is not simply a matter of social preference; it’s an economic imperative.