Prudential scraps retirement age for employees

The statutory retirement age of 62 is quite still far from Singapore's average lifespan of 83.1.

Prudential revealed that it will be allowing its employees to work beyond the statutory retirement age of 62 as life expectancy booms in Singapore.

The company acknowledged that retirement by 62 ‘may no longer make sense’ with Singapore’s average lifespan of 83.1 given that it is approaching an ageing population which is edging towards 100, Prudential Singapore CEO Wilf Blackburn said.

“If we stop work at 62, we are looking at nearly 40 years of retirement if we live to 100,” Blackburn explained. “Such a long retirement period may pose financial challenges should you outlive your savings. Moreover, a prolonged period of inactivity may also lead to health and social problems, the CEO added.

Prudential’s new retirement policy which came into effect on 1 October was introduced on the back of the firm’s Ready for 100 report which explores the readiness and aspirations of Singapore residents to live to 100.

Prudential currently has six employees aged 62 and above who are eligible for re-employment in the next five years.

The new policy gives them the option to stay on in their jobs and be entitled to the same benefits, including medical, as all employees whilst drawing the same salary as before. Prudential noted that they will still receive a retirement payout any time they choose to leave their jobs.