Once again, today is the day of Singapore’s National Day Rally 2019, and we have done a summary for you on the changes in retirement age, re-employment age and CPF contribution rates.
*The Public Service will raise its retirement and re-employment ages a year earlier in 2021
Who will be affected?
- Higher retirement age of 63 – Those born on or after July 1, 1960
- Higher re-employment age of 68 – Those born on or after July 1, 1955
- For those who are above 55, CPF contributions will be raised gradually from 2021 onwards
- CPF rates will taper down after the age of 60 and level off after 70
- CPF withdrawal policies are not affected
CPF contribution rates
|Age group||CPF Contribution Rate (By the year 2021)||CPF Contribution Rate (By the year 2030)|
|Above 55 to 60||26%||37%|
|Above 60 to 65||16.5%||26%|
|Above 65 to 70||12.5%||16.5%|
How will Singaporeans be affected?
Singaporeans’ life expectancy is now at 85 years old which is even longer than Japanese’.
Due to the ageing population, the government had to take measures by allowing seniors to be in the workforce longer. In order to help the seniors to work longer, here are some things to support them:
- Redesigning of jobs and trainings such that they can be tailored to capabilities of older workers
- Adopt the right mindset
- Taking up more courses to acquire more skills
With the increased retirement age, it is important to know how to properly plan for your retirement. You can have a look at our article on retirement planning in Singapore.
Other than the changes in retirement age, re-employment age and CPF, here are other updates announced in National Day Rally 2019.
Government will respond promptly if Singapore’s economy is affected
There has been an economic slowdown recently. However, it has not affected jobs in Singapore, and retrenchment and unemployment rates still remain low.
PM Lee Hsien Loong assured that the Singapore government is well-prepared and paying close attention to the international situation. If the economic situation exacerbates, the government will step in to sustain the livelihood of Singaporeans.
Pre-school will be made more affordable
By raising the monthly income ceiling from $7,500 to $12,000, more families will benefit from additional school subsidies. Approximately 30,000 more households are estimated to benefit from this.
As of now, about 50% of all pre-school places are supported by the government. However, this will be raised up to 80% in the future.
Tertiary education fees to be lowered and government bursaries to be enhanced
The annual degree course fees for students at Singapore Institute of Technology (SIT) and Singapore University of Social Sciences to be lowered from approximately $8,000 to $7,500.
The bursaries for university students will be raised up to 75% of their degree fees (up to 50% currently). The bursaries of polytechnic students will be raised up to 95%, from 80% currently.
Diploma and degree students at the Institute of Technical Education, Nanyang Academy of Fine Arts and Lasalle College of the Arts will get to enjoy these benefits.
The adjustments to the fees and bursaries will take effect from the next academic year onwards.
Preparing for climate change and rising sea levels
As a low-lying island, Singapore is prone to rising sea levels. Although the Marina Barrage already has a pump house with seven giant pumps to protect the city from flooding when there is heavy rain, if sea levels were to rise, one pump house will not be enough. National water agency PUB has planned for a second pump house to be built on the opposite end of the barrage.
Singapore is also looking into building polders, which is land reclaimed from the sea. Polders create a seawall in the water, and the water behind the seawall is pumped out to create dry land.
Alternatively, the government may reclaim a series of islands offshore from Marina East to Changi. The islands will be connected by barrages to build a freshwater reservoir.
Punggol by the bay
The Greater Southern Waterfront, the 30k stretch from the Gardens by the Bay East area to Pasir Panjang, will be developed into a new place to live, work and play. About 9,000 housing units will be built on the site of Keppel Club.
Developing Pulau Brani
Brani Terminal will be moved out, and Pulau Brani, together with Sentosa, will be developed to build new attractions. Sentosa’s beaches will also be redeveloped, and its nature and heritage trails will also be expanded.
The Greater Southern Waterfront will also be connected with West Coast Park, East Coast Park and the Rail Corridor with Sentosa.
A Downton South resort similar to Downtown East may also be built on Pulau Brani.