S'poreans 'prefer to retire at 55'

But two in three know they need to work till at least 60, survey finds

By Toh Yong Chuan, The Straits Times, 5 Apr 2014

FOUR out of 10 Singaporeans would choose to retire at the age of 55, a survey released yesterday revealed.

However, two in three are realistic, and know that they will have to work until at least 60, international recruitment firm Randstad found.

The desire to retire early could worsen the labour crunch, Randstad's country director for Singapore Michael Smith warned.

"Singapore is already facing a talent crisis, with many organisations finding it difficult to meet the demand for skills," he said.

"If a situation arises where a large group of the talent pool are unwilling to work to the retirement age, this will make the talent shortage challenge even more acute for organisations here."

Randstad said that firms can take steps to coax their staff to work longer.

Incentives could include offering older workers a more relaxed schedule, cutting the number of work hours and creating a friendlier work place.

The official retirement age in Singapore is 62, although bosses must offer healthy workers, who have performed satisfactorily, re-employment from ages 62 to 65 - or give them a one-off payment.

The Government is also looking at extending the re-employment age to 67, and more details are expected later this year.

More than 6,500 workers in Singapore aged 18 to 65 took part in the Randstad online poll between November and December last year.

The survey did not go into the workers' financial details, such as how they expect to support themselves in their retirement years.

But it found that three in five workers rank salary and benefits as most important when choosing a job.

The same proportion of workers also said they expect their bosses to be reliable, honest and sincere when handling staff.

Mr Erman Tan, president of the Singapore Human Resources Institute, said: "It is part of the progress of the society, where workers want to slow down as they grow older. But these workers can still be productive, so the onus is on bosses to try to retain them."

Former zookeeper Francis Lim, 59, retired four years ago, but said that the move was not without its trade-offs.

"I rely mostly on my savings and live frugally," he said, adding: "(But I get to) enjoy a slow pace of life and can find time for spiritual development."

4 in 10 S'porean employees want to retire at 55
Channel NewsAsia, 4 Apr 2014

Almost four in 10 Singaporean employees want to retire at the age of 55, 10 years earlier than the retirement age set by the government, revealed the 2014 Randstad Award survey released on Friday.

The survey involved 6,546 employees in Singapore. They ranged from 18 to 65 years old.

Thirty-seven per cent said they want to retire at the age of 55.

Respondents said they would be motivated to work longer if their workplace offered a more relaxed schedule (48 per cent), friendlier atmosphere (37 per cent) and fewer work hours (34 per cent).

Randstad Country Director for Singapore Michael Smith said the findings provide organisations with a clear insight on how best to engage their top talent in order to retain them.

"Singapore is already facing a talent crisis, with many organisations finding it difficult to meet the demand for skills.

“If a situation arises where a large group of the talent pool are unwilling to work till the retirement age, this will make the talent shortage challenge even more acute for organisations here.

“Employers need to constantly evolve their talent management strategies by understanding the motivations of their employees of all ages, including return-to-work mothers and the mature-age workforce," said Mr Smith.

For female employees, 36 per cent found flexible working hours a key motivator for staying in the workforce.

Mr Smith said this is not surprising, given that female employees tend to think about family priorities at some stage during their careers.

"Today's constantly changing world of work means that there is no one-size-fits-all approach.

“Employers need to continuously rethink their approach to ensure they are meeting the needs of their employees. These include establishing flexible working arrangements, a positive working environment and work-life balance.

“Yet it is critical for employers to strike the balance between keeping their employees happy and maintaining productivity to ensure their business is well placed for the next phase of growth," added Mr Smith.

Employers said it is not unusual that some workers prefer to retire earlier.

The findings also provide some insight on how best to retain talent.

Kurt Wee, president of the Association of Small and Medium Enterprises, said: "First of all, communication between both parties, between both spectrums, is very important.

"How they do career planning, how they do retirement planning, how they may transit a senior management, managerial staff into mentoring roles, advisory roles. How do they transform a retiring workforce into shorter schedules."

Workers were mixed in their reactions on whether retiring at 55 is realistic.

One worker said: "If you are enjoying the work that you are doing now, I believe that you will continue to work beyond 60."

Another noted: "I am very surprised but maybe they do not understand what retirement is all about. Because when you retire, you really have a lot of time. And after the first one, two months, you will feel bored."

The survey also found that competitive salary and employee benefits (63 per cent) remains the most important factor for employees in Singapore when they choose an employer.

The top three key employer personality traits employees in Singapore look for are: reliable (63 per cent), honest (62 per cent) and sincere (59 per cent).

Another survey finding was that Singapore employees spend an average of 42 minutes travelling to work.

This is close to their acceptable time of 39 minutes.

Just what to do after work?
Editorial, The Straits Times, 16 Apr 2014

THE global financial crash of 2008 not only diminished the savings of workers nearing retirement, but it also altered mindsets about the work cycle. In America, most people have to work their way back to the point where they originally had been ready to call it a day. With welfarism squeezed after the Clinton reforms and European workers being put on notice of a tightening of benefits, retirement is becoming a misnomer in the West. Workers are bracing themselves to continue on the job for as long as they have to.

Singaporeans will need to be no less realistic about what essentially is now a life choice and less of a mandated cut- off. Workers here are denied a margin of cushion as the economy is more exposed than most to external shocks. Job security is less assured as downturn cycles get shorter between recessions. With Central Provident Fund retirement savings pitched at a bare living minimum, on current configurations, longer working careers will increasingly be their lot if they wish to have a reasonable level of comfort when the income stops.

But a snapshot poll by Randstad, a recruitment firm, found that four in 10 respondents wanted to be able to retire at 55. One must suppose this is more wishful thinking than a considered judgment, taking into account ever rising living and health-care costs, paying for children's tertiary education and a little margin left for indulgences, like travel. Not to mention that more people are living longer these days and so will have to make whatever retirement funds they have stretch for longer. Most respondents were sensible but it is significant that even among them, their favoured stop-work age of 60 is two years short of the official retirement age of 62. Unofficially, better performing workers can expect to be active until age 67, where the re-employment bar could be raised to from the present 65.

Two points arising from such surveys are worth pondering. If these imply negative perceptions about continued job availability for seniors, there is work to do for employers and state planners. Is there employer resistance to keeping older workers despite mandated re-employment? But if findings are indicative of an aspiration, Singaporeans must be prepared for the adjustment. How they might fill their time would be as relevant a consideration as knowing if there is enough money to retire on in a relatively expensive city. Would they be content with an idle existence for two or more decades? When the golfing and buddy-lunch routine become stale and reading unread books turns out to be more chore than pleasure, reality will strike home with a vengeance. To enjoy their retirement years, workers might have to invest time and effort to develop hobbies and pastimes that they might engage in meaningfully. It is also important for seniors to remain connected so that they are not isolated from other people as well as developments of the day.

Positives to 'working after work'

LAST Wednesday's editorial ("Just what to do after work?") pondered over balancing the desire of seniors to retire early and the practical benefits of "working after work".

An earlier commentary ("Want to be happy when you are old? Get a job"; April 7) noted that there are well-being benefits to remaining in the workforce beyond retirement age.

It concluded that older people are happier and feel healthier when they are active and feel needed.

This is what most Singaporean seniors instinctively know already.

It is true that employers and state planners can redesign job processes to utilise this growing pool of manpower.

At the same time, Singaporeans need to prepare and adapt to the ageing population that our society will become.

Older workers must change their mindsets and accept retraining gladly.

The Government must set the example and take the lead in hiring seniors.

There are many government jobs that can be reserved for slower, less agile but experienced and more steady seniors, for example, inspectors, arbitrators and social workers, especially those serving the elderly.

With employers and Singaporeans working together, I see only positives in drawing retirees back to meaningful work.

Geoffrey Kung
ST Forum, 21 Apr 2014

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Want to be happier when you're old? Get a job