The recommendations of the tripartite committee have paved the way for raising the mandatory retirement age to 67. This will be good for Singapore, as its population is ageing fast.
At present, 22 per cent of the workforce is over 50. The $30 million in funds in the next two years will certainly help retain workers and change mindsets about older people and the value of the contributions they can make.
To help workers who have already passed the mandatory retirement age of 62 with re-employment opportunities, the government could help by waiving CPF contributions from both employer and employee to increase their wage competitiveness. Tax returns probably could also be waived.
Tan Kok Leong
Principal,
TKL Consulting
Date: Monday. February 6, 2006