Working
Longer
1.
Best way to have enough
savings during old age – stay employed and work longer
a.
With longer lifespans,
countries around the world like the US,
UK,
Japan are trying to
get their people to work longer and receive state pensions later, in their late
60s
b.
We too have to make this
adjustment
i.
Do not expect all
Singaporeans to work till their 80s and 90s like Mdm Lee and Mdm
Loke
ii.
But to retire at 55 or even
at 62 is too early
iii.
Lim Swee Say (coming back
from the US) told
me:
“During a
walkabout, I talked to a resident at the market. He was healthy
looking.
(1)
LSS: How old are
you?
(2)
Resident:
72.
(3)
LSS: Wow. You are looking
healthy for your age. Are you still working?
(4)
Resident: No. I retired a
long time ago, when I was 55.
(5)
LSS: 55! Why did you retire
so young?
(6)
Resident: Because I didn’t
know I was going to live so long!”
c.
How to get more people in
their 60s working?
i.
Discussed with union
leaders
ii.
This is their foremost
concern
iii.
Workers themselves want to
continue working, which is a tremendous plus
iv.
But need to enable more to
do this
d.
How? Three
ways:
i.
Education
ii.
Legislation
iii.
Financial
Incentives
2.
Education
a.
Changing mindsets for both
employers and workers
b.
Employers must recognise
the value of older workers
i.
Deploy them effectively, to
make the most of their abilities and strengths
ii.
e.g. SBS Transit using
retired bus drivers as Service Mentors to guide new
drivers
c.
Workers must adjust too –
be prepared to change gears after 62
i.
Accept lower pay and
lighter work
ii.
Accept lower appointments
so younger ones can move up
iii.
e.g. SingPower Senior
Technicians retiring and being re-employed as Technicians
d.
Have spoken about this
before, and so will not say much tonight
3.
Legislation
a.
Clear signal to employers
and the public that we are serious
b.
Some ask – why not just
pass a law to raise the retirement age?
i.
Experience shows this will
not solve the problem
ii.
Legal retirement age now
62
(1)
But only 2/3 of men are
still working up to 62
(2)
1/3 have stopped earlier,
despite legal retirement age
(3)
Many women stop working
even earlier
iii.
Simply raising retirement
age beyond 62 may discourage employers from hiring older
workers
c.
Better approach – legislate
for re-employment to continue working beyond 62
i.
More flexible for both
employers and employees
(1)
Not necessarily the same
job
(2)
Not necessarily the same
pay
ii.
Does not mean that every
worker will definitely get a job
(1)
But employer must make an
offer
(2)
Take into account worker’s
performance, health and preferences, and company’s needs
(3)
In most cases on an annual
basis
(4)
Both sides work out a
win-win arrangement
iii.
This is what the Japanese have done,
after long preparation
d.
We will do
this
i.
We will pass law to take
effect from 2012
ii.
Require employers to offer
re-employment to workers reaching retirement age, i.e. 62
(1)
First step – up to 65
(2)
Later, push this up to
67
4.
Financial
Incentives
a.
Government will
provide incentives for older people to work, and for employers to hire
them
b.
Workfare Income Supplement
(WIS)
i.
One important tool to
achieve this
ii.
Already tilted in favour of
older workers
(1)
Starts at 35 – ¾ of the
benefit
(2)
Above 45 – full
benefit
iii.
Further higher tiers for
older workers in their 50s and 60s to strengthen
incentive
iv.
Had planned to do this when
we review the Workfare scheme in a few years
(1)
But better not wait
(2)
Will move
now
(3)
Make a strong push to get
people working
c.
Will introduce higher tiers
of Workfare for older workers – above 55
i.
Up to double the payout for
younger workers
ii.
Currently, a worker aged 60
earning $1,000 gets $100 a month from WIS (actually
$1,200 a year), or 10% of salary
iii.
Under revised scheme, will
double this to $200 a month, or 20% of salary
d.
Will make a big
difference
i.
More take-home pay and more
CPF
ii.
Encourage older workers to
be re-employed
iii.
Encourage employers to hire
older workers, instead of replacing them by younger ones or foreign
workers
5.
These are proposals from
the unions and Tripartite Committee on Employability of Older Workers, chaired
by Gan Kim Yong
a.
Good ideas that we are
implementing
b.
Raise employment rates for
older Singaporeans, and help them to save more for old
age