Speaking at the opening of NTUC national delegates conference on Monday, Mr Lee said the CPF message is not easy to understand but the government has made special efforts to reach out to the public.

He stressed that the basic message is simple. Singaporeans were working longer, from 62 to 65 and then to 67 because they were healthier and fitter.

They will earn an extra one per cent interest rate on their CPF savings. At the same time, they will draw their savings later and make them stretch longer.

The details of the CPF changes are worked out by Prof Lim Pin's National Longevity Insurance Committee which includes three union leaders.

Going forward, Mr Lee said the Republic must keep on adjusting and adapting to changes to stay ahead. He said that was the way to remain competitive and to create jobs with good pay.

He assured union members that the government will keep in close touch with them on major issues such as the public transport system and affordable healthcare.

Mr Lee also said that Singapore has to keep its eye on the bigger picture and to plan ahead for the longer term.

He said the key to a strong economy is to stay open and flexible.

He asked union leaders to explain to Singapore workers the need for foreign workers. He said if Singapore keeps them out, then jobs may also leave. Without them, he pointed out that cannot have our integrated resorts, Business and Financial Centre, petrochemical plants or even Punggol 21 Plus.

Turning to the benefits of economic growth, Mr Lee said the government wants all workers to reap the gains. He said this will not happen automatically and so required special attention and action.

He said the government is working on this and wants a strong labour movement to to partner development and nation building.

He urged union members to find new ways to strengthen links to the ground - for example reach out to younger and would-be workers as well as nurture more leaders.

Some 800 unionists are attending the three-day conference.