Retirement Planning When Age Is Just a Number

Singapore is on the brink of a significant shift in how we view retirement. The Ministry of Manpower plans to raise the statutory retirement age to 64 in 2026, and eventually to 65 by 2030. This change is driven by longer life expectancies, healthier older adults, and the need to address labor shortages. Many Singaporeans see this as a chance to stay active in the workforce while securing their financial future. But beyond just extending the retirement age, this shift represents a fundamental change in how we think about retirement—it's becoming more flexible, personalized, and adaptable to our modern lives.

A New Mindset on Retirement

In Singapore, a recent survey reveals that about 88% of those aged 50 and above support raising the retirement age to 63 or older. Around 80% are in favor of increasing the re-employment age to 68 or higher¹. This shows a growing understanding that retirement isn't a one-size-fits-all milestone. Instead, it's a life transition that depends on individual goals, health, and financial readiness.

Exploring Flexible Retirement Paths

Traditionally, retirement meant stopping work entirely at a certain age. But today, many people choose to retire based on personal milestones or emotional turning points, not just age or financial targets. Studies by T. Rowe Price show that many workers transition gradually into retirement through flexible hours or part-time work.

This evolution means retirement is no longer a single "cut-off point" but a journey filled with choices. It's about deciding not only when to retire but also how to retire and what life after retirement should look like.

People increasingly seek a retirement lifestyle that supports their quality of life, health, personal growth, and social engagement. They value financial security, but also psychological fulfillment and a sense of purpose. For instance, some retirees return to work, driven by financial needs, a desire to stay active, or simply because they enjoy their jobs. In Singapore, over 90% of senior workers who wanted to continue working were offered re-employment in 2023², highlighting a strong societal demand for seniors to remain active.

Conversely, some younger professionals are taking career breaks to pursue dreams or explore new ventures. The trend of "micro-retirement"—taking temporary breaks for rest, study, or personal goals before returning to work—is gaining momentum in Singapore, reflecting a desire for flexibility and meaning at all life stages.

Retirement Planning Beyond Age and Finances

In today's dynamic world, where retirement ages are evolving and flexible career options abound, retirement planning needs a personal touch. Just as no two careers are identical, no two retirement journeys should be the same. It's crucial for pre-retirees to take charge of their retirement plans, moving beyond the traditional focus on age and finances. However, research shows that while over 70% of pre-retirees plan financially, only about 40% feel psychologically ready for retirement³.

A successful retirement plan should be holistic, encompassing more than just age and finances. By defining a clear and personal retirement vision based on lifestyle, health care, meaning, and work preferences, individuals can create a foundation that guides their financial decisions. This approach helps pre-retirees understand how much money they need by aligning their personal goals and values with their retirement income needs.

Embracing this comprehensive approach allows individuals to redefine retirement at their own pace and on their own terms. Whether they choose to extend their work life beyond the traditional retirement age or retire earlier, focusing on a well-rounded vision ensures their financial plans support a life rich in experiences, purpose, and engagement. Retirement, after all, is not the end of the road—it's the beginning of a new journey.