According to the General Household Survey 2015, most Singaporeans aged 65 and above receive their financial support from their children. Though Singaporeans are busy saving up from their own financial security and retirements, they are still usually concerned with their parents’ own retirement.
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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 the 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. This needs a family effort and everyone may have a part.
The key part to stay afloat financially is to save much as early as possible. It will be helpful to get an endowment plan as it will grow overtime. After around 10 years, your parents might be able to accumulate more savings to add in 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 S$100 or S$200 and more. Your goal is to have sufficient fund in case your parents gets into an emergency situation. If things go well, your parents can even choose to have an early retirement.
As much as possible, help your parents to be physically active and in shape to prevent various health problems. Help them get a gym membership or enroll them in lifestyle programmes.
Get adequate insurance coverage
As early as possible, buy a wide rage policy for your parents. Nobody can predict the future, the wider coverage will be better. When you are getting a health insurance, consider three things:
- Your parents’ age
Check the insurance’s policy on the latest age individuals can apply. For example, if the maximum entry age is 80 years old, then you can’t apply for the insurance if your parents are already 81 or older. The policy will cover your parents for life regardless on which age they have acquired the policy.
- Pre-existing health conditions
Most of the health insurances only accept the applications of those who have untarnished medical records. If your parents had cancer in their medical history, then it will be harder to find insurance for them. On the other hand, MediShield Life still applies to all Singaporeans and Permanent Residents regardless of their past health conditions.
Consider getting Critical Illness coverage, this will greatly help to cover their medication and treatments if they get hospitalized.
Sharing the Bill
If you are financially capable, it will be best to top up your parents’ CPF. You can also spread the financial obligation with your siblings, and gradually take responsibility of your parents’ bills. This way they can save more for their retirement.
As soon as your parents officially become senior citizens at age of 60, remind them of their discounts on buses, MRT and LRT rides. With their card, they get 2% off the total bill at NTUC Fairprice on Tuesdays. By the age of 65, they can already qualify for the Silver Support Scheme. This 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 S$750, those in three rooms will get S$600. If your parents live in a 4 room HBD flat, they will get S$450.
Pioneer Generation Package helps pioneers with their healthcare costs for life. Your parents will qualify if 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:
- Outpatient Care
Your parents can receive additional subsidies on top or their already existing subsidies which 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 for the rest of their lives.
- MediShield Life
Your parents can pay less for Medishield life premiums.
- Disability Assistance
If your parents sustained moderate to severe functional disabilities, they can get cash amounting to S$1,200 a year.
It pays to make your parents know about their discounts and other rights to give them more comfort as they live their retirements. If you need more cash to take care of your retired parents’ finances, you can rely on Cash Mart’s personal loan offers. Call Cash Mart now.
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