TR EMERITUS

According to a new survey from Manulife published last month [Link], deteriorating health in old age is the number one concern for Singaporeans. The number two concern is worrying that healthcare will become unaffordable, followed by the inability to maintain their current standard of living and the worry that they will need to support their parents financially. Surprisingly, the fear of running out of money is the least of Singaporeans' concern out of the 5 choices: The survey, which was taken in the first three months of the year, polled reasonably well-off to affluent investors over 25 who are the primary decision makers of financial matters in the household and who have investment products. The survey shows the grim reality of ageing and worsening health in retirement, preying on the minds of Singaporeans more than anywhere else in the region. On average, Singaporeans expect that recurring long-term healthcare expenses to set in from about the age of 59. Three in five said they have a personal health or medical insurance plan, and of these two thirds said that their insurance is enough to meet their current needs. Two thirds of respondents said they will purchase, renew or maintain their personal health insurance during retirement. However, the findings also showed that a further 17 per cent wish they could but believe it won’t be possible. They said that either their policy will not be renewable after a certain age or that there is no insurance policy available to cater for their needs. “We see in the survey findings that as people get older, they realize they tend to be healthier than they originally thought, so the impact of higher health expenses is delayed, say from late ‘50s to mid ‘60s," said Ms. Annette King, President and CEO of Manulife Singapore. However, despite the widespread expectation of government support for public healthcare, Singaporeans anticipate that during retirement, healthcare and medical expenses will account for 13 per cent of their monthly expenses, second only to household expenses and daily necessities (19 per cent). At present, healthcare expenses already account for 10 per cent of investors’ monthly income. According to WHO's data, per capita healthcare expenditure in Singapore has risen by 15 per cent a year on average in the past ten years. In Singapore, one out of every three deaths is a result of heart disease or stroke. Meanwhile, the number of people diagnosed with cancer has risen 15 per cent in the five years to the end of 2012 when it reached over 12,000 cases (data from National Cancer Centre Singapore). Healthcare costs in Singapore, meanwhile, have risen faster than inflation in recent years; up about 40 per cent since 2000, compared to just over 25 per cent for consumer prices. Singapore government being miserly towards its citizens Health Minister Gan Kim Yong During a parliamentary debate in Nov last year, Health Minister Gan Kim Yong said that the government will do more to enlarge its share of healthcare cost from the current less than one-third to more than 40% (he did not give a time-frame to implement such an increase to 40%). However, comparing with the data from OECD countries using Gan’s 40% figure he promised, the Singapore government is still very much less generous than the governments of OECD countries, preferring Singaporeans to bear more in healthcare cost either through out-of-pocket payments or buying more health insurance themselves ('Gan: Don’t worry about MediShield Life premiums'). On average, the share of public spending in healthcare for OECD countries was 72.4% in 2011. Most of the OECD countries actually spent more than 50% in terms of share of public spending on healthcare in 2011. The exceptions were: Chile (45%), Mexico (47%) and the United States (49%). Still, their spending was very close to 50%. As can be seen, the governments of all the OECD countries are still spending more on healthcare as a percentage of public share in health spending compared to the Singapore government, even after factoring in Gan’s new target of 40%. With the Singapore government being so miserly towards its citizens in terms of healthcare, it is no wonder Singaporeans are quite unhappy with the government these days. Even ST Editor-at-Large, Mr Han Fook Kwang realised that Singaporeans mistrusting the PAP government will be the new norm from now on ('ST Editor: Mistrusting PAP Govt is the new norm now').    Read More →

I am a taxi driver and a former convict. A few months ago, the Land Transport Authority (LTA) sent me a letter informing me that as I was once found guilty in court, I needed a conduct testimonial from my current employer to decide whether I can be allowed to continue in my job. My current taxi company, SMRT, told me it did not have a policy of writing conduct testimonials for its drivers. LTA then told me to get one from the Singapore Prison Service (SPS) as an alternative. The SPS officer who answered my call said the prison will be able to write a conduct testimonial and told me to go to the prison to collect it. But all I received was a document stating the start and end dates of my imprisonment. There was no mention of my conduct in prison. When I told the officer that the document did not fulfil my needs, I was referred to a second officer, who informed me that SPS did not write conduct testimonials for prisoners. I told LTA of my difficulty in getting a testimonial, but it replied that SMRT and SPS did indeed write conduct testimonials. This is my plea to employers: Give us ex-convicts a chance. We may have made mistakes in the past, but we have paid the price in prison. Goh Kok Gan *  Letter first appeared in ST Forum, 25 Jun, "Tough for ex-convict to keep cabby job".  Read More →

This is a June 17 2014 file photo of Denmark's Crownprince Frederik meets local children as he attends Sports Day in Copenhagen. Denmark's sturdy social safety net helps explain why its wealth As other countries grapple with wealth gap, Denmark finds welfare system narrows disparities. (Jun 24, 2014) - This is what it's like to live in Denmark, a nation with a narrower wealth gap than almost anywhere else: You've been jobless for more than a year. You have no university degree, no advanced skills. You have to pay a mortgage. And your husband is nearing retirement. You aren't worried. If you're 51-year-old Lotte Geleff, who lost her job as an office clerk in January 2013, you know you'll receive an unemployment benefit of 10,500 kroner ($1,902) a month after taxes for up to two years. You're part of a national system of free health care and education for everyone, job training, subsidized child care, a generous pension system and fuel subsidies and rent allowances for the elderly.   Read more: https://sg.finance.yahoo.com/news/wealth-gap-danish-welfare-narrows-070138605--finance.html    Read More →