As Singapore’s population continues to age, the government has implemented changes to the pension system in order to meet the increasing demand. These changes come as a response to the growing number of older citizens reaching retirement age and the strain it puts on the government’s finances.
The first change is an increase in the retirement age from 62 to 65 by 2030. This is in line with the global trend of people working longer and will help to sustain the pension system by allowing individuals to contribute for a longer period of time. In addition, the government will also be implementing a progressive wage model for older workers in order to encourage companies to retain and hire older employees.
Another significant change is the enhancement of the Central Provident Fund (CPF) scheme, which is a compulsory savings plan for Singaporean’s retirement. The government will increase the CPF contribution rate for older workers, with an additional 1% for those aged 55 to 60, and 1.5% for those aged 60 to 65. This will provide a boost to their retirement savings and help them to have a more secure financial future.
The final change is the introduction of the Silver Support Scheme, which aims to provide additional financial assistance to the bottom 20% of elderly citizens who have lower income and limited family support. This will help to alleviate the burden