SINGAPORE In a bold move to strengthen pension security and adapt to a rapidly ageing population, Singapore will roll out sweeping changes to its retirement framework in 2025. The comprehensive reforms, which include increases in retirement and re-employment ages, adjustments to Central Provident Fund (CPF) schemes, and enhanced support for older workers, mark a significant step toward long-term financial sustainability for retirees.
These changes follow recommendations by the Tripartite Workgroup on Older Workers and aim to align Singapore’s policies with longer life expectancy and evolving economic conditions.
Key Revisions to Retirement and Re-employment Ages
Starting July 1, 2026, Singapore’s statutory retirement age will increase from 63 to 64, with a long-term target of 65 by 2030. Similarly, the re-employment age will rise from 68 to 69, eventually reaching 70 in the same timeframe.
While the national implementation begins in 2026, several organizations are leading the charge ahead of schedule. The National Trades Union Congress (NTUC) has announced it will adopt the new thresholds from January 1, 2025, for its employees, showcasing early commitment to the initiative.
CPF Reforms to Boost Retirement Savings
Parallel to age-related changes, the Central Provident Fund (CPF) Singapore’s mandatory savings scheme—will undergo key modifications to enhance retirement income adequacy.
From January 1, 2025, CPF members will see an increase in the Basic Retirement Sum (BRS), Full Retirement Sum (FRS), and Enhanced Retirement Sum (ERS):
- BRS: SGD 105,000
- FRS: SGD 210,000
- ERS: SGD 315,000
These updated thresholds allow members to receive higher monthly payouts through CPF LIFE, the lifelong income scheme.
2. Closure of the Special Account for Seniors
In a move to streamline account management, the Special Account (SA) for members aged 55 and above will be closed from the second half of January 2025. Funds in the SA will be automatically transferred to the Retirement Account (RA), consolidating savings for payout purposes.
More details on this transition are available on CPF’s official site.
3. CPF Contribution Rate Adjustments
To better support the savings of older workers, CPF contribution rates will increase from January 1, 2025, for employees aged 55 to 65:
- Employer’s contribution: +0.5%
- Employee’s contribution: +1%
This increment aims to narrow the gap in retirement savings between older and younger employees.
4. Raised CPF Salary Ceiling
The CPF monthly salary ceiling will also be raised to SGD 7,400, up from the previous cap of SGD 6,800, enabling higher-income earners to contribute more toward their future retirement.
Support for Employers and Older Workers
To incentivize businesses to hire and retain older workers, the government will continue offering support programs:
- Senior Employment Credit (SEC): Offers wage offsets of up to 7% for companies that hire Singaporeans aged 60 and above earning up to SGD 4,000 per month.
- Part-time Re-employment Grant (PTRG): Provides grants of up to SGD 125,000 to employers offering flexible work arrangements or part-time roles to senior workers.
Projected Impact on Retirement Income
According to CPF projections, an individual turning 65 in 2025 with a CPF savings balance of SGD 100,000 could expect a monthly payout of around SGD 1,100, up from approximately SGD 900 under the current regime. These monthly payouts will also be periodically adjusted for inflation, preserving purchasing power in the long term.
Addressing the Demographic Challenge
With nearly one in four Singaporeans expected to be aged 65 or above by 2030, these reforms reflect a proactive stance in preparing for the demographic shift. The government’s multi-pronged approach spanning employment, savings, and social support is designed to ensure that older citizens can enjoy meaningful, financially secure lives.
conclusion
Singapore’s 2025 retirement overhaul marks a significant milestone in national policy, balancing the goals of fiscal responsibility, social inclusion, and individual dignity. As these reforms take root, Singaporeans are encouraged to review their retirement plans, explore the updated CPF tools, and consult financial advisors to optimize their retirement readiness.