Retirement age hike boosts senior jobs: study

The employment effect of the 2022 REA increase was similar to that of the 2017 change to 67 from 65.

The 2022 increases in the statutory retirement ages were associated with higher employment rates amongst senior workers, according to a study by the Ministry of Manpower.

The Retirement Age (RA) was raised to 63 from 62, and the Re-employment Age (REA) to 68 from 67. According to the study, the RA increase was linked to a 0.4-percentage-point rise in employment for directly affected workers, whilst the REA increase corresponded to a 0.7-percentage-point increase.

The employment effect of the 2022 REA increase was similar to that of the 2017 change to 67 from 65, suggesting that the impact of raising the REA had not diminished over time.

The RA increase primarily worked through legislative protection against age-based retirement, whilst the REA increase appeared to influence employment through both legislative protection and adjustments in social norms among workers and employers.

The study also found variation across sectors and worker profiles. The RA change had a greater effect in outward-oriented sectors such as manufacturing and wholesale trade, and amongst seniors living in executive flats, condominiums, or apartments.

These groups were more likely to benefit from the additional year of statutory protection, either because of industry hiring preferences or reluctance to accept lower re-employment pay.

The findings underlined the continued role of RA and REA in shaping retirement expectations and safeguarding older workers. The government has formed a Tripartite Workgroup on Senior Employment and an Alliance for Action on Empowering Multi-Stage Careers to review and refresh senior employment policies.

These initiatives are intended to complement upcoming increases to RA 65 and REA 70 by 2030.