These must be properly addressed, so that that the aim, our joint aim, of enabling older workers to continue working and saving for retirement is not undermined by the evolving demographics in our country and by big environmental changes worldwide.
Upping Retirement Age, Reemployment Age
I thank the Finance Minister for announcing the next calibrated increase in CPF contribution rates for older workers aged 55 to 65 in this Budget. This will certainly help grow their CPF funds faster.
We, the NTUC, are also grateful for the enhancements to the Silver Support Scheme, Matched Retirement Savings Scheme, and specific initiatives under the Majulah Package such as the Earn and Save Bonus, Retirement Saving Bonus and MediSave Bonus. All these efforts will increase the CPF savings of older workers and make for greater security in retirement.
However, it remains true that the most material way to help older workers financially in retirement is by adding to the effective working years. And here I stress the word effective, as opposed to legislated.
During NTUC’s Every Worker Matters Conversations last year, we asked older workers who participated what they hoped to do when they reach the current retirement age of 63. Out of 10, 8.5 of them said they wanted to continue working. 6 out of the 8.5 respondents hoped to continue in their current jobs or industry where they have accumulated experience and value. Many also asked when the Government will announce the next increase in statutory retirement and re-employment ages, since there is still a gap between the current ages and the goal of reaching the retirement age at 65 and re-employment age at 70 by the year 2030.
And to remind fellow members here, this 2030 goal of statutory retirement age, 65, and statutory re-employment age ceiling, 70, was the work of the Tripartite Workgroup on Older Workers which report came out in 2019, and the roadmap was endorsed. Now, it’s 2024.
I therefore call on the Government to announce the next step increase in the retirement and re-employment ages soonest and to give reasonable notice to both business and workers so both sides can get ready in good time. We should act promptly because we are already practically halfway in terms of timeframe so that we can implement the next increase by, say in two years』 time, 2026. I believe this is the pace that we need in order to reach those agreed goals by the year 2030 given the uncertainties that are inherent in the economic environment worldwide.
Next, I will speak on the subject of equity in opportunity and access to training so as to minimise risk of pre-mature displacement of our older workers.
Equity in Opportunity & Access to Training so as to minimise risk of pre-mature displacement
So when older workers express their hope to be able to continue working, they also share their anxieties about this forced obsolescence, this being rendered out-of-date and then really rust away.
NTUC found that more than 9 in 10 older workers, besides wanting to continue working, wanted to be continually trained. These workers knew that training was critical to their remaining relevant in their jobs. They particularly worry about access to training opportunities.
I thank the Finance Minister for announcing the SkillsFuture Level-Up Programme for all Singaporeans aged 40 and above, aimed particularly at programmes and courses that would enhance employability. This shows that the Government is alive to the important nexus between older workers』 training and their employment and employability. Relevance is as salient as legislation in terms of bringing about an increase in effective working years.
The question is how to make that happen. Of course, funding is important.
That is why Budget is important. Yet, together with funding and for real outcomes, effective implementation is also key. Therefore, we must scale up mechanisms that can ensure actual implementation according to the intent in the workplace. This is why I fully support fellow Labour MP Desmond Tan’s call for employers to quickly work with the NTUC and our unions to form Company Training Committees (CTCs).
Through active CTCs, businesses can transform faster and workers of all ages can be helped to be trained in relevant skills and to be able to grow with their companies.
Here I again thank the Government for the $100 million funding to NTUC to scale up CTCs in order to achieve real outcomes for all stakeholders. I also want to thank DPM Heng Swee Kiat for recognising the value of CTCs in his speech earlier today.
From NTUC, we pledge to work ever more closely with the Government in order to roll this out not only in numbers, but in effectiveness, in order that we might be able to help as many workers as possible, as soon as possible.
I ask all employers to form CTCs soonest, and to work with NTUC and our unions to ensure that workers of all ages are given fair opportunity to be well-trained.
These workers will then help energise your companies』 growth.
overcoming age bias
The third area that needs tackling is that of age bias. Older workers worry about age bias in several areas, namely access to training, availability of flexible work arrangements so that they can continue working while seeing to care needs and fair consideration as jobseekers after being displaced. Empirical research suggests that these fears about age bias have basis, and it requires tackling.
For this reason, I look forward to the workplace fairness legislation and the Tripartite Guidelines on Flexible Work Arrangements Requests that the Government will be introducing. The workplace fairness legislation will build on existing tripartite mechanisms such as TAFEP, TADM and relevant joint guidelines to give even greater confidence of fair play to workers. This will be a strong national signal against various forms of workplace discrimination, including age bias. NTUC and our unions will work closely with employers to advance the interests of workers and companies.
Building up caregiving services to strengthen employability of older workers
Beyond workplaces, there is also a growing need to expand and scale up viable, accessible care services to cater to a rapidly aging population. In the context of my focus today, I argue that this is important not only for the health and wellbeing of our seniors but also for the employability of their middle-aged working family caregivers. More of these family caregivers may then not need to quit work in order to undertake their care duties. Or at least to delay such an eventuality. Every year of continued working will significantly help with the retirement adequacy of the caregiver.
