SMU School of Economics Associate Dean (Faculty Research) and Professor of Economics Hoon Hian Teck noted that the raising of CPF contribution rates of workers aged above 50 to 55 showed that the government recognises that life expectancy has increased and that workers will spend more productive years in the workforce. This will help increase their funds for retirement. He added that the increase in the CPF salary ceiling will boost retirement adequacy for middle-income workers. The tight labour market will help to counteract any fall in employment demand due to a rise in wage cost.