SG NDR 2019: Would you, as a business owner voluntarily increase retirement and re-employment ages?


  • Community Manager

    Hey SG folks!

    Has everyone seen National Day Rally 2019? This aspect was particularly striking to me -

    Changes concerning the growing aging population:

    • Retirement age will be raised from 62, to 63 in 2022 and 65 by 2030 (for context, it's remained at 62 since 1999)
    • Re-employment age will go up from 67 to 68 in three years’ time, and then to 70 by 2030
    • CPF contribution rates for older workers:-

    PM Lee said a first step will be taken in 2021 to raise CPF contribution rates for those above 55, with “subsequent steps thereafter”.

    When the changes are fully implemented, workers aged above 55 to 60 will enjoy the full 37 per cent CPF rate. The CPF rates will begin to taper down only after 60 and level off after 70, said Mr Lee.

    Most ideally, with the above comes a huge assurance and encouragement to older workers who are willing and able to stay employed.

    On the other hand, businesses / employers who were "worried about business costs and the uncertain economic outlook", was also a competing narrative. Costs could include not just the rise in contributions per se, but also healthcare needs of older workers, such as insurance and medical leave.

    To which,

    Mr Lee said businesses can expect a “support package” to help them adjust to the changes in the retirement age, re-employment age and CPF contribution rates.

    "While the first adjustment is set for January 2021, the full increase in CPF contributions will be done over the next 10 years or so depending on economic conditions."

    To our business owners here (or in the shoes of one) - would you voluntarily increase the retirement and re-employment ages like these guys?


 

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