Survey shows 3 in 10 expect to retire at age 65 or older
By Cheryl Frois, Channel NewsAsia | Posted: 09 January 2009 2305 hrs

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SINGAPORE: The first-ever survey on baby boomers in Singapore has shown that just three in 10 expect to retire at 65 years or older.

The current retirement age is 62, but new legislation is pushing for Singaporeans to keep working, at least until 65.

Those surveyed were already working or looking for a job and were asked to specify their desired retirement age.

The survey was commissioned by the Ministry of Community Development, Youth and Sports (MCYS).

In difficult economic times, older workers are often among the first to be retrenched. The Singapore government recognises that this may make its plans to compel firms to re-employ workers aged 62 for another three years difficult.

Acting Manpower Minister Gan Kim Yong said: "We need to continue to press on with efforts because it is not an easy task."

"If you go by certain factors, it is possible that you will see a higher percentage of older ones being retrenched. One factor would be skills level. If skills level is lower, therefore productivity is low, then the company might be less competitive," said Mr Lim Boon Heng, Minister in the Prime Minister's Office and Minister-in-charge of Aging Issues.

The government hopes flexible wage systems and part-time options will encourage companies to employ older workers and keep them longer.

Stephen Lee, president of Singapore National Employers Federation, said: "When you extend employment opportunities to those 62 and above, the workers themselves would like to work in some alternative fashion rather than eight hours a day, five days a week... and companies which can make their employment and work patterns more flexible, usually find it easy to engage older workers."

But the MCYS survey of baby boomers showed that just 36 per cent of them wished to work part-time. Even then, they listed flexible work and similar income as top conditions for post-retirement work.

But under the new legislation, which kicks in in 2012, employers need not employ older workers at the same job or the same pay.

Mr Gan said: "Wages must reflect their productivity, we want to encourage companies not to undercut the older workers but pay them what is reasonable in accordance to their productivity as well as their performance."

Even before the new legislation comes into place, the government, companies and unions are already pushing for it to be implemented.

But as with any new law, the devil is in the details. Companies will have to redesign job specifications and operations to fit older workers.

- CNA/ir