Coping With Inflation Price Hikes In Singapore

With inflation, we see an increase in cost of goods sold and gradual price hikes across goods and services. Taken in this sense, it means the associated increase in cost of living is likely to erode purchasing power and for seniors, means that the funds left aside for retirement diminishes.

Retirement may appear to be somewhat manageable for those with a steady income stream, it may not be the case for seniors who do not have a steady stream of income and are relying on their retirement savings. 

SMU Centre for Research on Successful Ageing (ROSA)’s new research on costs of living shows that Singapore’s older adults are more concerned now about their financial situations than they were during the circuit-breaker

Strategies to cope with inflation

Budgeting

Inflows 

For those who are working, planning and managing this source of income is important in coping with inflation. For those who are earning an income, one alternative is to consider taking up other jobs or assignments on the side as a way to supplement income.

Upskilling is important in driving upward mobility in jobs, with new and refreshed skill sets, it opens more doors for one to command higher salaries which can help with managing the effects of inflation. 

Managing outflows – saving money

To help Singaporeans cope with rising cost of living, the government has provided various subsidies on the fronts of housing, healthcare, food and daily necessities. The Great Budget Meal Hunt was officially launched to allow the public to crowdsource meals for $3.50 or less. In certain hawker centres like Tampines Hub, each store sells a budget friendly meal typically below $5 to help defray some food costs. 

For groceries, NTUC Fairprice, Sheng Siong and Cold Storage offer discounts on groceries for senior citizens on certain days of the week, helping to offset some of the rising costs.

For transportation, senior citizens with concession cards can enjoy a discount of around 25% off adult card fares, depending on the travel distance.

Growing your nest – Investing 

With average longevity continuing to rise in Singapore, investment is essential to enhance retirement savings and to tackle inflation.  Inflation means that the value of your savings would be eroded and at any point in time where your savings don’t grow faster or at the rate of inflation, it will effectively reduce your purchasing power. 

Investments can provide returns via income generation or capital appreciation. Bonds, real estate investment trusts (REITs), rental property, saving schemes and dividend-paying stocks are common income-generating investments as they can provide regular cash distributions.

Government support to aid seniors in tiding over rising inflation

The government has put in place a comprehensive suite of measures to provide our seniors security and comfort in their silver years.

At Budget 2024, the Government announced cash support amidst other benefits to render more assistance for households, including subsidies for retirement and healthcare costs

• The Government will enhance the Assurance Package further to provide more support to help Singaporeans cope with cost-of-living concerns and economic uncertainties. The enhancements made in Budget 2024 will cost $1.9 billion.
• Every Singaporean household will receive an additional $600 CDC Vouchers. The first $300 CDC Vouchers will be disbursed in end-June 2024, and the remaining $300 CDC Vouchers will be disbursed in January 2025. Each tranche of CDC Vouchers will be split equally for spending at participating merchants/hawkers and supermarkets.
• Eligible Singaporeans will receive a one-off cash payment of between $200 and $400 in September 2024. 

Conclusion

It is common to see reluctance amongst seniors to bring up the difficulties of rising cost of living to their family members or caregivers in fear that it becomes a burden or could potentially strain relationships.

For seniors who find themselves struggling to cope with rising inflation, there are a myriad of avenues i.e. Social Service offices to source for help. As a caregiver, if you notice your loved one struggling with rising cost of living, explore some of the available resources that can help alleviate this financial situation or step in to help your loved one better manage this situation.