| Uncertainty About Healthcare For The Aged |
In a joint effort with global market research agency TNS, the Tsao Foundation for Successful Ageing embarked on its first national survey about attitudes towards preparing for ageing. Participated in by 300 respondents, the Tsao Foundation-TNS Ageing Preparedness Survey not only provided insights about ageing, but it also raised concerns about the availability of physical and social support for the elderly based on its key findings.
The survey showed about 58 per cent of surveyed Singaporeans said they are confident – or at least somewhat confident – about the quality of life they will have in their old age. Around 80 per cent said they are already saving for their retirement, while only 23 per cent consider themselves to be actively saving. Although they may be planning ahead, a total of 57 per cent do not know how much they should save for their golden years. The idea for the survey came about after Prime Minister Lee Hsien Loong addressed matters of ageing in 2007’s National Day Rally speech. The survey’s respondents consisted of 21 to 55 year-olds who were polled through the Internet between July 27 and July 9.
Dr Mary Ann Tsao, president of the non-profit group Tsao Foundation which advocates on issues relating to ageing and care for the elderly, is astounded by the results.“The survey results and the implications they have on society are tremendous,” she says. “The findings have demonstrated that people are generally confident about their own level of preparedness for retirement but, as a society, we may have gone only halfway towards making people feel comfortable with the country’s physical and social support for ageing,” comments Dr Tsao.
When it comes to growing old, the survey showed 79 per cent would rather be financially independent. With their health being their main concern, only 50 per cent are comfortable with the physical and social support Singapore currently provides. Results also pointed out that about 63 per cent of Singaporeans would like to retire overseas, with 75 per cent of them belonging to the 21 to 34 age bracket. Of this age group, 73 per cent cited slower pace of life as a reason to move, while 69 per cent said they would relocate for a lower cost of living and 34 per cent preferred to seek better healthcare for the aged.
The survey indicated more than 70 per cent of Singaporeans would prefer to spend their old age with their spouses, while about 90 per cent see themselves spending their golden years at home rather than in retirement homes. But only eight per cent of those surveyed said they want to spend their twilight years with their children.
More retirement benefits neededDr Tsao highlights the survey is targeted at would-be retirees. She says that while they are aware of the need to prepare for old age, they do not know where to begin.
“The new generation is well-educated. They have money in their Medisave and CPF,” she says, but adds that while they have the financial resources to retire, more incentives need to be introduced so they will not seek greener pastures when they become seniors.
“Perhaps, we have not done enough. More needs to be done to make sure that future generations of older Singaporeans will have confidence and comfort levels, as well as commitments to remain in Singapore… because social, financial and infrastructure support will be here,” she opines.
Dr Tsao is startled by a high proportion of young Singaporeans who are contemplating on retiring overseas, with a high number of those in their 20s and 30s keen on moving.
“They’re going to have to move in their 30s, establish a base, pay social security and build a social support so they can actually take advantage of their retirement,” she continues.
“You’re talking about possibly a flight of people at their prime, in their 30s, so they can build a life somewhere else as a hedge against old age,” says Dr Tsao, noting that with a family and a mortgage, saving for one’s retirement can be especially challenging.
Dr Tsao views the senior citizens in Singapore as lacking a voice within society and that their role in a community is not fully established. While meeting the needs of an ageing population is a challenge around the world, it remains a new phenomenon for a rapidly growing Singapore. “It is redefining the role of an older person,” says Dr Tsao.
“In other countries, they continue working, they work in different capacities, their productivity is recognised in many different ways and the opportunities are available. We have not quite gone there yet,” she observes, referring to the strong presence of the baby boomers in the US. “There has to be a dialogue. There has to be a society thinking together.” Elderly insurance and healthcareA prime concern among Singaporeans when it comes to growing old is their health, the survey said. At an individual level, the elderly would like to be financially dependent and to not rely on family. “This means preparation,” says Dr Tsao. “People clearly need to have more information perhaps. Because people say they are preparing but they are not sure if it’s enough,” she explains.
Income security and the concern over healthcare are inter-linked, Dr Tsao says. Without enough savings, older folks may find it difficult to seek medical attention or long-term care to ensure they live comfortably.
For example, they may require special needs transportation to facilitate traveling, especially if they suffer from debilitating illnesses such as stroke. “It has everything to do with the amount of money to live on, their relationship with the community and their family. And they are concerned with poverty because they are not able to afford healthcare or pay for long-term care,” she continues.
While the Central Provident Fund (CPF) is a flexible scheme, Dr Tsao feels it may be insufficient for one’s retirement. She says there needs to be diversified sources of funds to build up one’s retirement nest egg. For instance, the World Bank and the International Monetary Fund recommend a “multiple-pillar” approach to retirement planning, Dr Tsao points out. She stresses that CPF is a conditional scheme which does not prioritise long-term aged healthcare.
“You have to be working, you have to be earning enough, you have to be able [to] not spend so much on your kid’s education and your housing, and it still does not hedge against long-term care,” she continues.
Dr Tsao says that subsidised healthcare is available to those who are terminally unwell, but financially-backed long-term care is not offered to those who need it, particularly for the elderly who suffer from chronic ill-health and disability. She cites the high monthly costs of nursing homes as an example. Such services have to be provided on a policy level and it will act as an inexpensive safety net for the aged. “There needs to be some scheme that helps people to save and pay for that when they grow old,” she says.
“For the average individual, it is really hard to save that much,” she says, “For someone to start from young and save because they might get disabled in their old age is almost impossible for the average household,” Dr Tsao ends.
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