What Takes Place in Singapore If You Require Long-Term Care? A Financial Overview
Long-term care is a financial life event as well as a medical one. The need for help with everyday tasks, whether brought on by ageing, an unexpected illness, or an accident, can completely alter your routines, relationships, and financial situation.
This article explains the financial ramifications of needing long-term care in Singapore for you or a loved one. We’ll assist you in making clear and confident plans, from calculating disability costs to comprehending CareShield Life and other support programs to avoiding financial strain on your family.
Step 1: Recognising the Features of Long-Term Care
Support required when an individual becomes severely disabled, particularly in performing Activities of Daily Living (ADLs), is commonly referred to as “long-term care.” For the definitions of these activties, please hop over to our previous article.
You might require professional care in a community hospital, daycare facility, or nursing home, or you might need care at home (with assistance from a family member or maid).
Step 2: Calculating the Care Cost
In Singapore, monthly expenses can look like this:
| Type of Care | Monthly Cost Estimate |
|---|---|
| Full-time maid | $1,000 – $1,500 |
| Nursing home | $2,000 – $4,000 |
| Home nursing | $100 – $200 per visit |
| Day rehabilitation | $800 – $1,500 |
Step 3: What Kind of Government Assistance Is Offered?
The Singaporean government provides a number of assistance programs:
CareShield Life 🛡
Once you can no longer perform three of the six ADLs, you will receive lifetime monthly payouts.
Beginning in 2025 at $649 per month and rising over time
ElderFund
For Singaporeans with lower incomes who have little to no family support
Financial aid for people with serious disabilities
MediSave Long-Term Care Withdrawal
Pay for authorised community hospitals, daycare centres, and assisted living facilities with MediSave.
Subsidies
MOH means-tested subsidies for therapy, nursing homes, and home care
Even though these programs are beneficial, they frequently fall short of covering all expenses, particularly for middle-class and upper-class families who might be eligible for smaller subsidies.
Step 4. What Are the Gaps?
The pressure is felt by the majority of Singaporeans here:
- The payout from CareShield Life might not be equal to actual expenses.
- Because subsidies are tier-based, households with higher incomes might not receive much assistance.
- The cost of private care (better quality or preferred location) is high.
- It may be necessary for carers (spouses or kids) to reduce or cease their working hours.
- This is the point at which many families must draw from savings, liquidate assets, or rely on adult children.
Step 5: Using Planning to Close the Gap
Here’s what you can do right now to keep your financial independence and avoid burdening your family:
✅ Upgrade with a Supplemental Plan
- Increased payouts each month
- Prior assistance (some plans only cover two ADLs for disability)
- MediSave can be used to pay premiums up to $600 annually.
- Create a Long-Term Care Fund
- Put money aside for investments, retirement accounts, or your SRS.
- Calculate the approximate cost of care at your desired level for ten to fifteen years.
- Examine Your Insurance Holdings
- Think about disability income insurance, critical illness insurance, and hospitalisation.
Step 6: Engage in Discussion Early long-term care planning is about values, not just numbers.
Consider this:
- Should I go to a nursing home or remain at home?
- In the event that I lose my mental capacity, who can I trust to make decisions?
- How can I provide both financial and emotional support to my spouse or kids?
By talking about these now, you can prevent future financial confusion and emotional strain on your family.
Although no one anticipates losing their independence, one in two Singaporeans 65 and older must deal with this reality. If you don’t plan ahead, the rising cost of care will probably surpass your savings.
You can face the future with financial clarity, control, and confidence if you start with CareShield Life and make wise upgrades like long-term care funds or supplement plans.
Don’t put off planning until a crisis arises. Now is the ideal moment to safeguard both your loved ones and your independence.
Take action now. If you need help as to where to start, feel free to contact us for a non-obligatory chat.
Read “1. What long-term care is, why you need to start planning now.
