<TABLE border=0 cellSpacing=0 cellPadding=0 width=452><TBODY><TR><TD vAlign=top width=452 colSpan=2>Published September 4, 2009
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>S'poreans must rely on themselves in old age
Long-term care requires govt, insurance sector and individuals to take joint responsibility
By SIMON NEWMAN
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SINGAPORE has one of the world's fastest-ageing populations, and is projected to be the fourth oldest country in the world by 2050.
<TABLE class=picBoxL cellSpacing=2 width=100 align=left><TBODY><TR><TD>
</TD></TR><TR class=caption><TD>The earlier, the better: There is an urgent need to help Singaporeans understand the importance of preparing for the unexpected, and get them to recognise that early planning is always wiser and cheaper, given that premiums rise with age, says the writer</TD></TR></TBODY></TABLE>The demographic shift is leading to changing dependency ratios - from 15 persons aged between 15 and 64 supporting one person aged 65 and above in the 1980s to five persons supporting one older person by 2020 - which will create increasing pressure in supporting the needs of a growing pool of seniors.
Health care is a key issue to address for our ageing population, and is a topic on which Prime Minister Lee Hsien Loong spoke at length in his recent National Day Rally speech. Among healthcare issues, funding for long-term care stands out as one of the most pertinent.
Long-term care can often be costly and continue over an extended period of time. It is also a rising area of concern as Singaporeans are spending a longer time in ill health and disability.
According to the World Health Organization, male and female Singaporeans spend the final nine and 12 years of their lives in ill health respectively on average. The Singapore government also estimates that the number of seniors needing help with even the simple activities of daily living will double to 65,000 over the next decade.
Currently, schemes that help with long-term care costs come in the form of ElderShield, which provides a monthly cash payout to cover the out-of-pocket expenses for the care of a severely disabled person, and Medifund Silver, which is a safety net to help the poor. They complement MediShield, which takes care of hospitalisation bills.
However, the current payout limit for ElderShield and MediShield may not be enough to sustain the care required over the long term.
For example, ElderShield's monthly payout is capped at $400 for six years, which is far below the $800 to over $4,000 it costs each month to put a patient in a private nursing home.
Emerging issue
While high-income Singaporeans will be able to afford long-term care, and those on low incomes can rely on help from voluntary welfare organisations, the largest middle-income group is at the greatest risk of not being able to pay for its long-term care needs.
Successfully addressing this emerging issue requires the government, the insurance sector and individuals to take joint responsibility.
On its part, the Singapore government has recognised that current schemes need to be strengthened. The Ministerial Committee for Ageing, chaired by Minister in Prime Minister's Office Lim Boon Heng, is currently looking into creating a fiscally sustainable financing model for long-term care.
Minister for Health Khaw Boon Wan has also highlighted long-term care as an area his ministry is studying and will be placing more emphasis on in the most recent parliamentary sitting.
The private insurance sector should also take on the responsibility and opportunity to develop relevant products that can help beef up the basic level of protection provided by government schemes to meet Singaporeans' emerging needs.
When Aviva was appointed an official insurer for ElderShield, we conducted a series of focus groups to better understand Singaporeans' long-term care requirements as well as ways in which supplementary products could be developed to augment ElderShield's value.
While both the government and the insurance sector may introduce the best policies and products to help meet Singaporeans' long-term care needs, the onus is still on Singaporeans to take responsibility for themselves and be self-reliant.
Unfortunately, according to Aviva's 2008 global Consumer Attitudes to Saving study, only one-third of Singaporeans said they had enough savings/investments to cope with the unexpected.
The irony is also that people who need health insurance the most, the aged, are sometimes the least insured or have the least ability to pay, while younger working adults who can afford insurance are also generally less aware of the need for health insurance.
Monitoring health
There is therefore an urgent need to help Singaporeans understand the importance of preparing for the unexpected, and get them to recognise that early planning is always wiser and cheaper, given that premiums rise with age.
Besides financial planning, Singaporeans also need to lead healthy lifestyles and regularly monitor their health, to decrease the need for long-term care in the first place. The insurance sector can help promote this by introducing innovative products that encourage customers to stay healthy, which makes business sense as it ultimately leads to fewer claims.
Ultimately, there is a different role for each party to play in addressing the issue of long-term care. It is only by having the government create a sustainable financing model, having the insurance sector offer affordable and flexible products, and having Singaporeans adopt a responsible attitude of self-reliance that Singapore's long-term care issue can be successfully addressed.
The writer is the managing director of Aviva Singapore, a provider of protection, savings, health and investment products. The company is one of only three insurers appointed by the Ministry of Health to offer the ElderShield scheme
</TD></TR></TBODY></TABLE>
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>S'poreans must rely on themselves in old age
Long-term care requires govt, insurance sector and individuals to take joint responsibility
By SIMON NEWMAN
<TABLE class=storyLinks border=0 cellSpacing=4 cellPadding=1 width=136 align=right><TBODY><TR class=font10><TD width=20 align=right>
</TD><TD>Email this article</TD></TR><TR class=font10><TD width=20 align=right>
</TD><TD>Print article </TD></TR><TR class=font10><TD width=20 align=right>
</TD><TD>Feedback</TD></TR></TBODY></TABLE>SINGAPORE has one of the world's fastest-ageing populations, and is projected to be the fourth oldest country in the world by 2050.
<TABLE class=picBoxL cellSpacing=2 width=100 align=left><TBODY><TR><TD>
</TD></TR><TR class=caption><TD>The earlier, the better: There is an urgent need to help Singaporeans understand the importance of preparing for the unexpected, and get them to recognise that early planning is always wiser and cheaper, given that premiums rise with age, says the writer</TD></TR></TBODY></TABLE>The demographic shift is leading to changing dependency ratios - from 15 persons aged between 15 and 64 supporting one person aged 65 and above in the 1980s to five persons supporting one older person by 2020 - which will create increasing pressure in supporting the needs of a growing pool of seniors. Health care is a key issue to address for our ageing population, and is a topic on which Prime Minister Lee Hsien Loong spoke at length in his recent National Day Rally speech. Among healthcare issues, funding for long-term care stands out as one of the most pertinent.
Long-term care can often be costly and continue over an extended period of time. It is also a rising area of concern as Singaporeans are spending a longer time in ill health and disability.
According to the World Health Organization, male and female Singaporeans spend the final nine and 12 years of their lives in ill health respectively on average. The Singapore government also estimates that the number of seniors needing help with even the simple activities of daily living will double to 65,000 over the next decade.
Currently, schemes that help with long-term care costs come in the form of ElderShield, which provides a monthly cash payout to cover the out-of-pocket expenses for the care of a severely disabled person, and Medifund Silver, which is a safety net to help the poor. They complement MediShield, which takes care of hospitalisation bills.
However, the current payout limit for ElderShield and MediShield may not be enough to sustain the care required over the long term.
For example, ElderShield's monthly payout is capped at $400 for six years, which is far below the $800 to over $4,000 it costs each month to put a patient in a private nursing home.
Emerging issue
While high-income Singaporeans will be able to afford long-term care, and those on low incomes can rely on help from voluntary welfare organisations, the largest middle-income group is at the greatest risk of not being able to pay for its long-term care needs.
Successfully addressing this emerging issue requires the government, the insurance sector and individuals to take joint responsibility.
On its part, the Singapore government has recognised that current schemes need to be strengthened. The Ministerial Committee for Ageing, chaired by Minister in Prime Minister's Office Lim Boon Heng, is currently looking into creating a fiscally sustainable financing model for long-term care.
Minister for Health Khaw Boon Wan has also highlighted long-term care as an area his ministry is studying and will be placing more emphasis on in the most recent parliamentary sitting.
The private insurance sector should also take on the responsibility and opportunity to develop relevant products that can help beef up the basic level of protection provided by government schemes to meet Singaporeans' emerging needs.
When Aviva was appointed an official insurer for ElderShield, we conducted a series of focus groups to better understand Singaporeans' long-term care requirements as well as ways in which supplementary products could be developed to augment ElderShield's value.
While both the government and the insurance sector may introduce the best policies and products to help meet Singaporeans' long-term care needs, the onus is still on Singaporeans to take responsibility for themselves and be self-reliant.
Unfortunately, according to Aviva's 2008 global Consumer Attitudes to Saving study, only one-third of Singaporeans said they had enough savings/investments to cope with the unexpected.
The irony is also that people who need health insurance the most, the aged, are sometimes the least insured or have the least ability to pay, while younger working adults who can afford insurance are also generally less aware of the need for health insurance.
Monitoring health
There is therefore an urgent need to help Singaporeans understand the importance of preparing for the unexpected, and get them to recognise that early planning is always wiser and cheaper, given that premiums rise with age.
Besides financial planning, Singaporeans also need to lead healthy lifestyles and regularly monitor their health, to decrease the need for long-term care in the first place. The insurance sector can help promote this by introducing innovative products that encourage customers to stay healthy, which makes business sense as it ultimately leads to fewer claims.
Ultimately, there is a different role for each party to play in addressing the issue of long-term care. It is only by having the government create a sustainable financing model, having the insurance sector offer affordable and flexible products, and having Singaporeans adopt a responsible attitude of self-reliance that Singapore's long-term care issue can be successfully addressed.
The writer is the managing director of Aviva Singapore, a provider of protection, savings, health and investment products. The company is one of only three insurers appointed by the Ministry of Health to offer the ElderShield scheme
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