Retirement age: I was asked a few times during my quest to get people to start their SRS with $1.
Current retirement age is 62.
In accordance with the Retirement and Re-employment Act (RRA), the minimum retirement age is 62 years. Employers are not allowed to dismiss any employee based on an employee’s age.
Employers must offer re-employment to eligible employees who turn 62, up to age 67, to continue their employment in the organisation. The re-employment age was raised from 65 to 67 on 1 July 2017 to help older workers who wish to continue working as long as you are willing and able.
Source: MOM
Starting your SRS with $1 does not mean your retirement age will be pegged at 62. It simply pegs your SRS account withdrawal age without penalty at 62. If you start your SRS say 3 years later, your SRS withdrawal age without penalty might be 65 if the retirement age is adjusted to 65 by then. 3 years makes a big difference to retirement planning.
Another common pushback i get: Retirement age push later means my CPF i get back later.
Reply: No. The retirement age and CPF life payout ages are currently DELINKED. The CPF payout age is currently 65 and official retirement age is 62. It actually makes sense to have both at the same age 65.
Another pushback: “Oh no, official retirement age push to 65 means i have to work to 65 ah, isn’t that bad for me?”
Reply: No, you can actually resign today and go into retirement if you have the money otherwise, you have to work until you die anyway, 65 is just a number but an important number. Currently, companies can force someone into retirement without payout or offer a retirement contract when someone hits 62, but if that number is adjusted to 65, employees are protected by LAW that companies cannot retire them until 65.