SINGAPORE has one of the largest ageing populations in the world.

According to a 2006 United Nations report, Singapore is fourth behind Macau, Japan and South Korea in a ranking of countries with the oldest projected populations.

The lifespan of Singaporeans has also increased. Today, the average life expectancy is 80 compared with 61 in 1957.

The growth of the labour force is projected to slow significantly as a result of declining fertility rates and the ageing of its baby boomers, according to the country's Ministry of Manpower (MOM).

The higher life expectancy indicates that the elderly must have enough savings and work longer to sustain their livelihood.

However, Singaporean Prime Minister Lee Hsien Loong, in his National Day speech last year, says the country's challenge is to get more people in their 60s working.

He says the legal retirement age is 62 but not everybody works till 62.

"Many women leave the workforce when they are in their 30s and 40s after having children; when they set up their households, they drop out of the workforce," he says.

Among men, only two-thirds are working at 62, he adds.

"Two-thirds is not bad, but even then, one-third has retired before reaching 62, the legal retirement age," he says.

However, the number of older people in Singapore's workforce is increasing, according to MOM.

The employment rate of older workers aged 55 to 64 was 53.7 per cent in 2006, 6.7 per cent higher than that in 2004, according to the MOM'S Final Report of Tripartite Committee on Employability of Older Workers released last year.

The increase shows there were 40,000 more older people in employment in 2006 compared with 2004.

The committee was formed in 2005 to recommend measures to:

- Boost the employability of older workers and help them stay employed longer to raise the retirement age beyond 62 years.

- Shape a positive perception and mindset of employers, employees and the public towards the employment of older workers.

The committee also found there have been positive changes in the workplace to retain and employ more older workers.

The MOM's 2006 survey of about 2,900 establishments employing at least 25 employees show that:

- About half of the establishments offered re-employment to retired staff, or allowed their employees to continue working beyond the retirement age of 62.

- Four in 10 establishments did not make it mandatory for workers to retire at 62 and allowed employees to work without any age cap.

- Larger firms were more likely to allow employees to work beyond the official retirement age; 68 per cent of medium-sized establishments employing 100 to 249 employees and 73 per cent of larger establishments employing at least 250 employees did so.

Findings from the same survey indicate that companies employed older workers 60 and over because they:

- Are committed to staying in the job.

- Have the skills and work experience.

- Can mentor and impart knowledge to younger staff.

According to a 2006 survey by Manpower Inc of more than 28,000 employers in 25 countries and territories, Singapore ranked top in terms of employers with recruitment strategies targeting workers aged 50 and above, and second after Japan for employers having retention strategies.

Singapore is favourable towards older workers staying in the labour force longer to meet the increasing number of jobs expected in five years.

More than 450,000 jobs are expected in five years if the economy grows between 4.5 per cent and 6.5 per cent annually.

In 2006, 176,000 jobs were created, of which 90,000 went to locals.

Lee says the government will pass a Re-Employment Act to take effect by 2012.

Employers will have to offer re-employment to staff up to 65 years old, starting from 2012.