When the re-employment age was raised from 65 to 67 in 2017, it was implemented rather quickly.
But the move to raise the re-employment age from 67 to 68 will take effect only three years from now, and there’s a 10-year wait for it be raised to 70.
Similarly, the increase in retirement age from 62 to 63 will take effect only three years from now.
This delay in policy implementation is not inclusive. Older workers of a certain age will not benefit from this new policy.
The Government should consider amending the current Retirement and Re-employment Act in the interim to allow private companies to exercise the option of implementing the new retirement age and re-employment age for staff they deem able to contribute.
To reduce the financial burden on private companies that want to implement the new policy before its effective date, the Government can de-link the rise in Central Provident Fund (CPF) contribution rates during the interim period.
Many, if not most, seeking re-employment do not consider the increase in CPF contribution an important requirement for work.
Tony Lim Thiam Poh