by Growing Needs | Mar 6, 2023 | A Better Tomorrow, Advanced Care Planning
The retirement and re-employment ages for Singapore workers will be progressively raised to 65 and 70 years old respectively under the law, to support older Singaporeans who wish to continue working to do so.
As mentioned, one of the key retirement planning tips is to start early. This is especially true for those who are looking to retire in Singapore.
It is important to start early because it allows you to have a better idea of how much money you will need to have saved up in order to cover your costs during retirement.
Another reason is because it gives you more time to invest and compound your money.
Singaporeans’ life expectancy is among the highest in the world. The life expectancy in Singapore is between 82-85. Assuming a modest $2,000 monthly lifestyle in 2022, an average 2.5% inflation per annum would raise this amount to $5,832 per month at the end of 20 years. At this rate, the total expenses needed from Age 65 to 85 (20 years) would work out be $949,200. Even with no inflation considered, the amount required would be $480,000.
The above calculations assumes that you do not touch your principal and just withdraw the interest income. To have a comfortable retirement, it is important to start saving and investing early. This will give you more time to grow your retirement savings, and also help to hedge against the effects of inflation. Retirees in Singapore should aim to have a retirement sum of at least $1 million, which will last them for 17-20 years if they do not touch their principal. If they need to supplement their retirement income with some work, they can push this number up to 20-25 years.
To have a longer retirement, start early and invest your money wisely. Doing so will help ensure that you have enough money to cover your costs during retirement.
The cost of living in Singapore is relatively high, but this varies depending on your lifestyle. If you are planning to retire in Singapore, it is important to consider your lifestyle expenses.
For example, if you are a smoker, you can expect to spend around $500 per month on cigarettes. If you drink alcohol, you can expect to spend around $400 per month on alcohol.
If you eat out often, you can expect to spend around $800 per month on food. And if you travel often, you can expect to spend around $1,000 per month on travel.
These are just some examples of lifestyle expenses that you need to take into account when planning for retirement in Singapore.
As we age, our medical expenses are bound to increase. This is due to the fact that our bodies are not as efficient in repairing and regenerating cells, which leads to a higher risk of developing chronic diseases. In Singapore, there are two types of medical expenses – outpatient and inpatient. Outpatient expenses refer to those incurred when we visit a doctor or specialist for consultation, treatment or medication. Inpatient expenses refer to those incurred when we are admitted into a hospital for observation or treatment.
The average per capita expenditure on both outpatient and inpatient care are increasing steadily. On average, we can expect to spend around $2,000 to $3000 on medical expenses every year. However, this is just an estimate. The actual amount that you will need to set aside for medical expenses will depend on your health condition and the quality of healthcare that you require.
As we age, we are also more likely to develop chronic conditions that require long-term care. These include conditions such as Alzheimer’s disease, dementia and Parkinson’s disease. According to a report by the Lien Foundation, there are currently more than 82,000 people in Singapore suffering from dementia. This number is expected to increase to 160,000 by 2030.
The cost of long-term care can be very high. For example, the average monthly fee for a nursing home is around $3,500 and the average monthly fee for an elderly daycare centre is around $850. If you require long-term care, it is important to set aside enough money to cover the costs. This can be done through insurance or by setting up a trust fund.
There are a wide range of elderly care services available in Singapore. These include home care, daycare, nursing home and hospice care. The type of care that you require will depend on your health condition and the level of care that you need.
Home care is the most basic form of care. It typically involves help with activities of daily living, such as bathing, dressing and eating. Home care can be provided by family members or paid caregivers.
Daycare is designed for seniors who require more assistance than what home care can provide, but do not need to be admitted into a nursing home. Daycare centers typically provide social and recreational activities, as well as meals and transportation.
Nursing homes are for seniors who require 24-hour medical care and supervision. Nursing homes typically provide a wide range of services, including social and recreational activities, as well as physical, occupational and speech therapy.
Hospice care is for seniors who are terminally ill and have six months or less to live. Hospice care focuses on providing comfort and support, rather than cure. Hospice care can be provided at home, in a nursing home or in a hospice facility.
The cost of elderly care services varies depending on the type of service required. For example, the average monthly cost of home care is around $1,200, while the average monthly cost of nursing home care is around $3,500. When choosing an elderly care service, it is important to consider the quality of care that is provided. There are a number of ways to do this, including visiting the facility, talking to staff and speaking to other families who have used the service. It is also important to consider the cost of care. Elderly care services can be very expensive, so it is important to make sure that you can afford the service that you choose.
One way to reduce the cost of elderly care is to use government subsidies. For example, the Silver Housing Bonus (SHB) provides subsidies for seniors who live in HDB flats. The SHB can be used to offset the cost of home care, daycare or nursing home care. Another way to reduce the cost of elderly care is to use private insurance. There are a number of private insurance companies that offer coverage for elderly care services.
The cost of elderly care services varies depending on the type of service required.
REFER to our article on Nursing homes.
Be responsible and plan ahead for your own retirement finances, the sooner you start, the more time your money has to grow!
Growing Needs grew out of our own encounters with caring for our aging parents and reflecting on the Growing Needs that we ourselves would face as we advance in years. We hope to build a community that will learn, share and contribute towards caring for the growing needs of our loved ones.