In addition to my FIRE trial posts, I have set out to uncover what sort of perks FIRE seekers could potentially benefit from via the plethora of government schemes in Singapore.
Most of the time, the important metrics that determine how well-to-do Singapore Citizens are and therefore, their eligibility for government support schemes, are –
IncomeAnnual value of my home
Assuming that I’m on a FIRE-ish lifestyle, employment income would likely be either zero or rather low, if I’m engaged in some form of work to pass time, socialize or learn new skills.
With regards to the annual value of my home, it is a little over $10,000 (4-room HDB apartment) which puts me into a good position to benefit from various schemes.
A quick note on this before we move on.
Besides income, the metric that is commonly used to determine eligibility for government schemes is the annual value of property.
To check the annual value of your property, simply log in to Inland Revenue Authority of Singapore (IRAS).
From the menu, click on Property > View Property Dashboard to see the annual value.
Since we’re talking about annual value, I might as well add that owner-occupied residential properties “enjoy” owner-occupier tax rates.
This is also how you can understand why you are paying a particular amount for your property tax.
My Property Tax = ( $10140 – $8000 ) * 4% = $85.60
Most people don’t pay attention to this figure but we’re actually updated on the AV of our property every year.
Having covered AV of my humble 4-room HDB apartment, let’s move on to the first scheme.
WHAT : The Workfare Income Supplement Scheme is a broad-based measure that tops up the salaries of lower-income workers and helps them save for retirement.
This is particularly nice to have if you’re pursuing Barista FIRE or even Coast FIRE that may not necessarily have significant or stable income on a monthly basis, whether you are working a part-time or freelance job.
Otherwise, consider the possibility being self-employed – declare net trade income and make MediSave contributions.
All the important information can be found in the website I have linked above, but a quick summary can be seen from the infographic below.
In Budget 2022, the [30-34] age band has been included although it is important to note the criteria of earning at least $500/month have also been added in to encourage regular employment.
Employee earning $1500 per month
The official WIS calculator helps you to determine how much payout you would be eligible for – see example for Employee above.
Self-Employed earning $500 per month
To take advantage of the WIS scheme as a Self-Employed person (declare income, contribute MediSave), the calculator can also helps you to estimate the payout you will receive.
Related : Workfare Skills Support (WSS) Scheme
WHAT : As an extension to the Workfare Income Supplement scheme, the Workfare Transport Concession (WTC) Card enables Workfare Income Supplement recipients below 60 years old to enjoy up to 25% off adult fares.
To be able to apply, you must be a Singapore citizen who is between 35 and 60 years old and receiving Workfare Income Supplement (WIS) payments.
The eligibility is as per WIS in the previous section, so if you’re receiving WIS you would automatically qualify for WTC card for discounted transport fares.
MRT fares comparison : Concession vs Normal adult
Most important of all, it is free to apply for the concession card!
Ah – it reminds me of the student concession card that I used to have 20-30 years ago and my friends and I would take joy rides on buses for fun. Days without smartphones and when computers weren’t that affordable, we had plenty of time on our hands.
With discounted fares, we can get between 21% to 27% discount by comparing the fare table above. On days when we don’t want to use Grab or GoJek, discounted public transport is great to have.
WHAT : The Community Health Assist Scheme (CHAS) enables all Singapore Citizens to receive subsidies for medical and/or dental care at participating General Practitioner (GP) and dental clinics.
Although all Singapore Citizens are eligible for CHAS, benefits are tiered according to household monthly income per person or the Annual Value (AV) of the home.
Do note that enrolment into CHAS is by application only and not automated.
From time to time, we do fall sick and it is common knowledge that the waiting at the polyclinics can be a little annoying : polyclinics have significant appeal due to the low cost of healthcare, and the increasing healthcare demand of an ageing population.
For some of us, we may have had medical benefits for our entire career. When I was working for a hotel, I visited Raffles Medical Group clinics for the slightest issue since it was only walking distance from my office.
In the next phase of our FIRE lifestyle, the CHAS cards provide a more affordable option for us if we wish to visit a General Practitioner (GP) instead of the polyclinic. After all, if I am not feeling well, all I want to do is to quickly get home and rest.
Near to where I stay, chains such as ProHealth Medical Group and Parkway Shenton are all CHAS clinics where subsidies (see above table) can be applied.
It is also great to see that CHAS scheme has included chronic illnesses such as allergic rhinitis (which I have) that could require long-term care and medication.
With non-existent or negligible income, we can easily qualify for the blue tier of CHAS card with the most benefits.
To make things even sweeter, do you know that CHAS Blue cards get 3% discount at FairPrice NTUC (and Unity pharmacies) every Thursday until the end of 2022? The discount is currently capped at $200 per transaction each day!
WHAT : The permanent GST Voucher (GSTV) scheme was introduced by the Government in Budget 2012 to help lower- and middle-income Singaporean households with their expenses, in particular what they pay in GST.
The GST Voucher covers 4 areas –
Cash – AugustMediSave – AugustU-Save – January, April, July and OctoberS&CC Rebate – January, April, July and October
The focus is on GSTV Cash since we may no longer have an income, or lower income in the case of other variants of FIRE with some form of work.
Following criteria applies –
You must be a Singapore citizen, residing in Singapore;You must be aged 21 or above in 2022;Your Income Earned in 2020 as assessed by IRAS (Assessable Income (AI) for the Year of Assessment (YA) 2021) must not exceed $34,000;The Annual Value (AV) of your home (as indicated on your NRIC) as at 31 December 2021 must not exceed $21,000; andYou must not own more than one propertyIncome earned in 2020 i.e.Assessable Income for YA2021$34,000 and belowAV of HomeUp to $13,000AV of Home$13,001 – $21,000GST Voucher – Cash$400$250GST Voucher – Cash (Special)$300$100
WHAT : Home Access Programme supports low-income family with affordable home internet connectivity.
Guaranteed you will not be able to find a cheaper deal than this in Singapore.
For a no-frills 500mpbs fibre broadbard by M1 for a 4-room HDB apartment, the monthly subscription comes down to only $17.30 inclusive of GST.
Eligibility criteria :
Stays in HDB flatHas a monthly Gross Household Income (GHI) ≤ $1,900 OR Per Capita Income (PCI) ≤ $650With at least one family member staying at the same residential address who is a Singapore citizen.
I recently renewed my StarHub fibre broadband contract for two years so I’ll probably take a look at this in 2024 haha.
Not exactly a scheme but obviously, once we have low or no income, it is likely that we would paying no income tax!
Snippet of SG Resident Tax Rate From YA 2024 Onwards
Yes, it is pretty obvious that there is no system in the world that is perfect.
Using both income and annual value of homes is an attempt to direct resources to specific segments of the population that need it the most, but there will always be loop-holes and inefficiencies. While this is a tongue-in-cheek look on the difficulties of distinguishing population segments, no doubt they are trying their best to give help to those who require it the most and I applaud their efforts.
So, there you have it – 5 schemes that can potentially benefit you upon achieving FIRE in Singapore. I had fun writing this article and I hope that you have enjoyed reading it too.
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Kevin started Turtle Investor when his net worth languished at negative $25,755. His desire to turn things around led him to build passive income from investments and side hustles that pay for his daily expenses and vacations. You can learn more about Kevin here.
