How to Support Your Retired Parents without Any Financial Worries

Despite being busy, Singaporeans worry about their elders. So if you wonder how to support your retired parents, continue reading. We’ll guide you through it without getting into money trouble.

According to the General Household Survey 2015, most Singaporeans aged 65 and above receive financial support from their children.

Singaporeans save up for their own financial security and retirements. However, they are still usually concerned with their parents’ own retirement.

Be Prepared to Support your Retired Parents

While your parents are still healthy, and it may seem awkward for some, you can start discussing their retirement plans. As our parents’ age, they get a higher risk of acquiring health problems. And it might be too late by then. Talk to them together with your siblings and discuss their plans. It needs a family effort. Therefore, everyone may have a part.

The key part of staying afloat financially is to save as early as possible. It will be helpful to get an endowment plan as it will grow over time. After around 10 years, your parents might be able to accumulate more savings to add to their CPF retirement funds.

Together with your family, you can build an emergency fund for your parents. It does not matter if you will pitch in $100 or $200 and more. Your goal is to have sufficient funds if your parents get into an emergency. If things go well, your parents can even choose to retire early.

As much as possible, help your parents be physically active and in shape. It prevents them from various health problems. Help them get a gym membership or enrol them in lifestyle programmes.

Credit: https://www.aia.com.sg/en/life-matters/wellness/provide-for-parents-in-old-age.html

Get adequate insurance coverage.

As early as possible, buy a wide range of policies for your parents. Nobody can predict the future. The wider coverage will be better. When you are getting health insurance, consider three things:

Your parents’ age

Check the insurance policy on the latest age individuals can apply. For example, if the maximum entry age is 80 years old, you can’t apply for the insurance if your parents are already 81 or older. However, the policy will cover your parents for life. So it is regardless of which age they have acquired the policy.

Pre-existing health conditions

Most health insurances only accept the applications of those who have untarnished medical records. So, for example, if your parents have cancer in their medical history, it will be harder to find insurance for them. On the other hand, MediShield Life still applies to all Singaporeans and Permanent Residents. So it is regardless of their past health conditions.

Consider getting Critical Illness coverage. It will greatly help to cover the health expenses. It includes medication and treatments if they get hospitalised. Therefore, you are more ready to support your retired parents.

Sharing the Bill

If you are financially capable, it will be best to top up your parents’ CPF. Also, you can spread the financial obligation with your siblings. Then, gradually take responsibility for your parents’ bills. This way, they can save more for their retirement.

Discounts

As soon as your parents officially become senior citizens at the age of 60, remind them of their discounts. Examples are rides on buses, MRT and LRT rides. Also, they get 2% off the total bill at NTUC Fairprice on Tuesdays with their card.

In addition, by the age of 65, they can already qualify for the Silver Support Scheme. The scheme aims to give more support to the bottom 20 per cent of Singaporean elderlies.

Those who live in one and two-room HBD flats will get $750. Meanwhile, those in three rooms will get $600. So if your parents live in a 4 room HBD flat, they will get $450.

Pioneer Generation Package helps pioneers with their healthcare costs for life. Your parents will qualify if they have been born on or before 31 December 1949 or aged 65 and above in 2014. If they have migrated, they should have obtained citizenship on or before 31 December 1986. With this package, they can have four benefits:

Credit: https://www.moh.gov.sg/cost-financing/healthcare-schemes-subsidies/pioneer-generation-package

Outpatient Care

Your parents can receive additional subsidies on top of their existing subsidies. Therefore, it covers the medications and other medical services by participating GPs and dental clinics.

Medisave Top-ups

Your parents will receive top-ups in their Medisave Accounts annually. But, the best part is for the rest of their lives.

MediShield Life

Your parents can pay less for Medishield life premiums. Thus, you can easily support your retired parents. 

Disability Assistance

If your parents sustained moderate to severe functional disabilities, they could get cash amounting to $1,200 a year.

It pays to make your parents know about their discounts and other rights. It makes them more comfortable as they live their retirements.

If you need more cash to take care of and support your retired parents’ finances, you can rely on Cash Mart’s personal loan offers.

Call Cash Mart now.