Singapore’s government-controlled labour union today (Feb 25) called on the government to increase retirement age beyond 62 for different industries to “allow workers who are able to stay in employment to do so”.
Currently under the Retirement and Re-employment Act (RRA), a company cannot ask an employee to retire before the age of 62. Employers must also offer re-employment for workers who reached the age of 62 up to a limit of 65.
The Singapore government has been unable to deliver its retirement promise to the people due to low interest rate returns of CPF and the depression of salaries. Most Singaporean elderly are still working beyond the age of 65 in lower-rung manual jobs like cleaners and security guards which pays a meagre income.
Government solutions by far have been encircling about employment and getting Singaporeans to work longer and beyond retirement age to make up for the inadequacy of CPF. The lack of retirement has been a major factor behind Singaporeans who emigrated overseas, where cost of living is cheaper and retirement funds grew at two or three times the rate of CPF. Just a few days ago, Malaysia’s equivalent of the CPF, the EPF, reported an annual return of 6.4% for 2015, nearly three times that of CPF’s 2.5%.