Singaporeans born in 1973 or earlier will get a boost for their healthcare and retirement needs through the Majulah Package.
By 2030, almost a quarter of Singapore’s population will be aged 65 and above, as reported in the Population in Brief 2023 report. Currently, our median age stands at 43 years old, a figure that has been steadily increasing over the last decade. In response to this demographic shift, the Government is devoting more resources towards preventive healthcare, senior support initiatives and national programmes like Healthier SG and Age Well SG.
In Budget 2024, the Government reaffirmed its commitment to enhancing healthcare affordability and improving health outcomes for Singaporeans. However, it highlighted the escalating fiscal challenges arising from the ageing population and emphasised the importance of prudent resource allocation to ensure sustained affordability for all.
Among the support announced is the Majulah Package, which is geared towards young seniors — Singaporeans currently in their 50s or early 60s. Benefitting about 1.6 million Singaporean seniors, which include the Pioneer (born 1949 or earlier) and Merdeka (1950s) generations, the package will provide bonuses to their CPF accounts, which will accumulate interest over time, thereby boosting their retirement and healthcare savings.
To qualify for the Earn and Save Bonus, Singaporean seniors must have an average monthly income ranging between S$500 and S$6,000, own not more than one property and live in a residence with an annual value of S$25,000 and below. The Retirement Savings Bonus criteria differs slightly. While the property conditions are the same, there is no average monthly income requirement, with seniors qualifying for it as long as their CPF retirement savings were below the 2023 Basic Retirement Sum of S$99,400 as at Dec 31, 2022.
BOLSTERING HEALTHCARE NEEDS
Annual figures provided by the Ministry of Finance show that overall social spending doubled to S$53.1 billion last year, up from S$27.6 billion in 2014. This includes costs incurred by the healthcare sector, which increased by S$10 billion to nearly S$18 billion in the same period.
It was also noted by Professor Kenneth Mak, the Ministry of Health’s (MOH) Director-General of Health, that Singapore has one of the longest life expectancies in the world (83 years in 2022). While the healthy life expectancy is high, currently, one could expect to spend the last 10 years of life in ill health.
There are also other concerns such as global inflationary pressures, and higher living and healthcare costs. The Majulah Package’s MediSave Bonus is much-needed help for Singaporeans like Ms Chen Seow Yin, who is 59.
To provide more assurance on healthcare costs for Singaporeans like Ms Chen, the Government has revised the income criteria for means-tested healthcare and associated social support subsidy schemes. Up to 1.1 million more Singaporeans will enjoy higher subsidies when the revisions are implemented by the end of the year.
These schemes and services with revised income criteria include MediShield Life and CareShield Life premium subsidies, the Community Health Assist Scheme (CHAS) and subsidies at public healthcare institutions.
“I’m glad that there are now more schemes that benefit my age group,” Mr Lee Chee Huat, an odd-job worker, said. “Now that I know there is more support for me, I can worry less about my future healthcare costs and look forward to retiring gracefully.” The 53-year-old, who was retrenched during the COVID-19 pandemic, lives alone in a three-room HDB flat.
Ms N Teoh, 65, who has been relying on her CPF withdrawals since she was retrenched from her administrative job last year, fears getting sick because she worries about affording the medical fees. She has enrolled in Healthier SG, alongside over 700,000 Singapore residents. This is a national initiative by MOH that focuses on preventive health.
With Healthier SG, she can consult her family doctor to develop a personalised health plan, manage her health screenings digitally, and access more physical and health-promoting activities via Active Ageing Centres.
GETTING READY FOR RETIREMENT
Another area that the Budget 2024 measures support is retirement. “As a homemaker all my life, my CPF accounts are quite bare,” said Ms Tan. She is keeping her savings in her CPF Retirement Account for a rainy day, while her two daughters top up the account yearly. “It will definitely help me grow the interest and ease my retirement expenses,” she added.
Mr Markus Sim, who just turned 51 this year, was pleasantly surprised to find he, too, qualified for these CPF bonuses. Said the engineer: “My salary is at the upper S$5,000 range, so I usually don’t enjoy many subsidies. I married late, so most of what I earn goes towards my three young boys, as well as my parents and their live-in caregiver. This is indeed a very welcome move to boost my future CPF LIFE payouts!”
In tandem with these measures, the Government will set aside S$3.5 billion over the next decade for the Age Well SG programme. “I used to grow flowers in my balcony, but stopped due to my health issues, so I’m really excited about the therapeutic gardens,” said Ms Chen, referring to the proposed “silver upgrades” to residential estates that will also include barrier-free ramps and senior-friendly home fittings.
Added Mr Sim: “My dad had a fall five years ago. Luckily, he was only bruised but it gave me a big scare. Having more senior-friendly features in our homes, at bus stops and on roads will really be a boon. Also, I may be relatively fit right now, but eventually, I, too, will weaken with age. It’s great that there will be more assisted living options and better home care arrangements for both us ‘young’ and ‘old’ seniors.”