Parliament: Is the statutory retirement age still necessary?

SINGAPORE: NTUC deputy secretary-general Heng Chee How on Tuesday (Feb 27) called for the formation of a committee to look into the need for a statutory retirement age, which is currently 62. The retirement age has been raised only once, from 60 to 62, in 1999.

Speaking during the Budget debate in Parliament, he said that the Tripartite Committee could also review the need for a ceiling to the re-employment age band. Employers must offer re-employment to eligible employees who turn 62, up to the age of 67, to continue their employment in the organisation. 

He asked if these age-based criteria were necessary “in the light of the pervasive adoption of the performance-based employment model over the years”. If deemed necessary, he said the committee could clarify the conditions under which the re-employment ceiling of 67 could be raised further, and to what age.

The re-employment age limit was raised from 65 to 67 last year to help older workers who wish to continue working as long as they are willing and able. 

Mr Heng, who is Senior Minister of State in the Prime Minister’s Office, said that the recommendation to raise the retirement or re-employment age to 67 was among those made by the Tripartite Committee on the Extension of the Retirement Age in July 1997, and was achieved after 20 years.

Mr Heng also suggested an assessment of the Effective Retirement Age, which is the average age at which workers declare retirement, introduced in 1993. The assessment can be taken into consideration when recommending measures to further raise the Employment Rate of older workers. 

These measures cover how the upgrading of older workers and age-universal practices can be included in the implementation of Industry Transformation Maps.

Pointing to estimates that say that up to 25 per cent of jobs in the current economy may be altered or displaced by technology within the coming 20 years, Mr Heng said that the average older working person may face higher hurdles in the adaptation and switching process.

This is on top of ageist attitudes among some employers, and such workers may be displaced out of the workforce long before reaching the re-employment age, he said. 

“With such pervasive technology, rapid digitalisation and changing business models, how can companies stay competitive while tapping on mature workers who bring value, insights and experience to the table?” he asked.

He also asked if there could be more efforts in trying harder to make the workplace more conducive for them to make a contribution in, and training them to be more digitally aware and technologically competent.

“In this rapidly changing world of work, skills requirements change quickly with the flux of competitive business models, technology and innovation. Old areas of the economy fade away even as new opportunities emerge,” he added.