A new study has revealed that Singapore requires to take urgent action to educate its citizens on the realities of long-term care as there is a significant gap in awareness and financial readiness in this regard.
A new whitepaper From Awareness to Action: Securing Long-Term Care for a Super-Aged Society released by financial services provider Singlife highlights sobering findings from Singlife’s long-term care insurance claims data from 2010 to 2024, two in-house research studies on long-term care and dementia care, as well as insights from policymakers, healthcare professionals, care providers, advocacy groups and caregivers.
Singlife group CEO Pearlyn Phau said, “We believe the conversation about long-term care needs to become louder, clearer and more urgent. Long-term care is not just a healthcare issue; it is a societal one. This white paper is a call to action for individuals, families and institutions to plan proactively because the long-term care challenge is already at our doorstep. The time to act is now before the burden becomes unmanageable.”
The main findings of the whitepaper include:
1. Long-term care can cost on average close to S$3,000 ($2311) per month. Yet more than half of those surveyed believe it costs less – a gap that needs urgent addressing. This cost has gone up by S$628 since a similar study in 2018, reflecting an annual inflation rate of around 4%. With the prolonged nature of care and compounding inflation, these costs are likely to escalate even further over time.
2. The national long-term care insurance schemes – ElderShield and CareShield Life – currently cover an individual for up to S$662 per month. There is a significant gap between this and what individuals need which can be covered by private long-term care supplementary insurance plans; yet only one in three Singaporeans aged 30 and above has bought such a plan. Many others will have to rely on savings and family support, which may strain retirement savings.
3. Actual Singlife claims data from 2010 to 2024 shows that on average, individuals will need long-term care for about 10 years. Singlife’s longest active claimant has been receiving monthly payouts for over 15 years. Long-term care does not just impact the elderly – Singlife’s youngest claimant is an individual who was 32 years old when he made a claim.
Beyond these sobering statistics, the paper also makes several recommendations on how to convert awareness into action. It highlights the fragmented landscape of long-term care services in Singapore and the maze of options including home-based nursing and rehabilitation, day care at community care centres and hospice services. It calls for better integration and accessibility so as not to compound the stress already faced by families, caregivers and frontline healthcare providers.
The five recommendations include:
1. A renewed focus on early detection, intervention and prevention of stroke, a leading cause of long-term care insurance claims;
2. A shift of perspective in retirement planning, to include preparedness for long-term medical care;
3. To promote active ageing through small but intentional choices that cover both mental and physical wellbeing.
4. To nurture a culture of community by building community-based support system, where individuals and families come together in support of those in need; and
5. To foster collaboration between public and private sectors to make long-term care more accessible, coordinated and people-focused.