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62 years old
65 years old
67 years old
If you work past MOM retirement age, you can re-contract with your employer until this age
According to the Ministry of Manpower, the official Singapore retirement age is now 62 years old although it’s slated to go up to age 65 by 2030.
This number is primarily meant to regulate employers, not workers. Should your employer suggest you “retire early to spend time with your grandkids” before age 62, you may have a case against them for unfair dismissal and can appeal to MOM.
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Of course, employers always try to get rid of older employees by throwing around words like “restructuring”, “streamlining”, or “focusing on core competencies”, so it’s not easy to get support for your case.
Benefits of MediSave Account top up
If you have not yet hit the BHS, doing a voluntary cash top up to your MediSave Account provides two benefits:
Benefit 1: Enjoy a risk-free 4 per cent p.a. interest rate on your MA savings
Benefit 2: Income tax relief at your marginal tax rate (see below table)
Do note that for the income tax relief, your chargeable income is reduced by the amount you topped up. For instance, if you earned $60K a year and you topped up $5K, your tax savings will be equal $5K x 7 per cent.
Maximum limit for MediSave Account top up
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12.5 per cent
Note on CPF contributions for 55 & above: Over the next 10 years, CPF contributions for older workers will be gradually adjusted upwards to meet the full contribution rate of 37per cent (employee + employer). The CPF contribution rates will only drop after age 60.
By the way, if you’re self-employed, none of the above applies to you. Any CPF contributions are voluntary EXCEPT Medisave contributions, which you’ll be prompted to pay after filing your taxes each year.
Example
Let’s say you are a 30-year-old earning a monthly salary of $5,000.
Every month, your employee’s contribution to CPF will be 20 per cent of your wage. That means that $1,000 will be deducted from your salary every month and deposited into your CPF accounts.