Prudential Singapore has done away with its mandatory retirement age of 62, giving its 1,100 employees the choice of when to retire, if at all.
The new policy, which came into effect at the start of this month, will allow the employees to “fulfil their personal and financial aspirations,” a Straits Times report said. There are currently six people aged 62 and above working at Prudential, who are eligible for re-employment in the next five years.
According to the insurer’s CEO Wilf Blackburn, removing the retirement age is a sensible move, given that Singapore’s population is rapidly ageing, with an average lifespan of 83.3 years, and with quite a few Singaporeans living to age 100 and beyond.
He said that if a person were to retire at 62, they could be looking at almost 40 years of retirement in case they live to become a centenarian. This long retirement period could result in financial challenges should they outlive their savings, Blackburn said, adding that a prolonged period of inactivity can lead to problems in an individual’s physical, mental, and social health.
“With this in mind, we decided to scrap the retirement age so that our employees can continue to work in Prudential for as long as they are able to perform their jobs well,” Blackburn said. “We want to empower them to decide when they want to retire, or if they wish to retire at all, rather than specify a work expiry date.”
Under the new policy, Prudential’s employees above age 62 can stay on in their jobs with all compensation and benefits available to them the same as before. When they decide to leave, they will still receive the full retirement payout due to them.