TAKING A CLOSER LOOK

Singapore’s Greying Population

Ageing, a complex socioeconomic and political issue, has become a pressing concern in the last twenty years. This is particularly true of many developed countries and Singapore is no exception. Many phrases have been coined to describe the phenomenon; one of which, the “grey tsunami” paints a bleak global scenario in which the governments look on helplessly as the aged in their respective countries swell overwhelmingly in numbers owing to the failure of the national population policies. This gloomy situation is unlikely to take place if governments adopt appropriate measures and “growing old” can actually be managed properly.

In our context, the senior citizens have much to contribute in terms of their wisdom and experience gained by living through the tumultuous years of Singapore’s early nation-building efforts and struggles. They are in fact our beacon of encouragement and support to guide us through the unchartered waters of our future. In this article, we take a peek at some of the concerns which may affect Singapore’s greying population. Population ageing occurs when the median age of a country or region rises owing to rising life expectancy with or without declining birth rates. Currently, the age of 65 is generally accepted (with some exceptions) as the age of retirement, when individuals see their incomes drastically reduced as they leave fulltime work. By 2030, 10 percent of Singapore’s population will be over 65. The lack of income will generate problems. Unless an individual is well prepared financially for life after retirement, many will find themselves unable to sustain a basic standard of living. This puts their financial security at risk and exposes them to drastic decline in the quality of lifestyle as they pass the age of 65.

In the past, especially in the first few years of Singapore’s independence, life expectancy was low – around 65-70 years. However, with vast improvements in the quality of nutrition and medical care in this day and age, life expectancy has risen significantly to between 80 and 85 years. The average person is expected to live at least another 15-20 years after their retirement.

Since the eighties, Singapore has emphasised the importance of personal responsibility for financial security after retirement. The primary vehicle for individual financial security is of course, the introduction of the Central Provident Fund (CPF) system. The CPF is a savings scheme enforced by the government to make sure that both the employer and the employee contribute respectively a certain percentage of the latter’s monthly salary by lodging the funds as savings with the CPF Board. The contributions are based on prevailing interest rates which are subject to adjustments from time to time to keep in step with the economic conditions of the country. CPF contributions made are placed into three separate accounts – Ordinary, Medisave and Special. Funds from the Ordinary Account may be used for housing, education and some investment purposes. The Medisave account is reserved for approved medical treatment and hospitalisation purposes. The Special Account is meant for old age and investment purposes. As life expectancy increases, more and more money needs to be kept aside to cater to the healthcare and basic needs of the individual.

One of the ways in which workers above 65 may maintain their income and standard of living is to continue to seek employment post retirement even though some employers may be reluctant to employ older workers for various reasons. This situation thankfully is gradually changing because of the continual tight manpower condition in Singapore and the government together with the manpower ministry has also been working hard to change the attitudes of employers towards older workers.

For most, working well beyond 65 is a good way to feel useful in continuing to contribute to society and preventing boredom from setting in, apart from being able to take care of their personal financial needs. Perhaps providing financial incentives, such as reduced corporate taxes for employing workers above 65 might be a step in the right direction. Furthermore, for industries facing manpower shortage, employing workers above 65 seems an obvious way to deal with the problem.

One of the ways in which workers above 65 can maintain their incomes and standard of living is to continue to work in their old age.

Another pertinent issue is housing. The government has helped the greying generation deal with this issue in many ways. The Housing Development Board (HDB) has been building highquality low-cost housing since the 1960s. This had enabled those born in the 1930s and 1940s to buy government-built flats so that they could afford to house their families in their own flats instead of renting. When their children grew up, got married or waited till the age of 35 and bought a flat of their own, the majority chose to buy houses in estates near their parents. The government has provided incentives in the forms of lower property tax rates and subsidies for adult children to live near their elderly parents. New developments have been implemented such as the three-tier cluster housing scheme where two smaller apartments are converted into one so that three generations can live together. Older housing estates are retrofitted with elderfriendly features such as lifts on every floor, handrails, wheelchair access and non-slip flooring in kitchens and bathrooms.

Owing to the rising cost of medication, the provision of quality medical care and treatment, the employment of trained personnel and experts in hospitals and healthcare has become a serious concern for Singapore as a whole and particularly for those over 65 as their medical needs tend to increase owing to ageing-related conditions. A step in the right direction has been the initiative to get seniors over 60 to sign up for healthcare insurance schemes with the government authorities providing the funding and the opportunities to do so. This entitles the elderly to an acceptable standard of medical care.

The new approach to healthcare for those above 65 is to focus on prevention rather than cure. The elderly are encouraged to exercise, eat healthy meals, keep themselves occupied as well as stay connected with the community. This connection with the society at large is important for the upkeep of their mental health. In fact, learning new skills such as surfing the internet, using the word–processing software and smart phones or tablets will keep them mentally engaged. Even learning a new language or practicing card games or working on Sudoku will do the elderly a lot of good.

The setting up of Community Hospitals to look after the elderly who are recovering from strokes, heart attacks, surgical operations or other health conditions that require them to live away from their families is another important

development. Until their medical conditions improve or when they no longer need any urgent or immediate medical attention, elderly patients can recuperate comfortably at such hospitals.

Apart from having contributed economically, the greying generation has a collective wealth of experience and they most certainly have a lot more in them which Singapore can tap on. Many have lived through the Second World War, the turbulent riots of the 1950s and the 1960s and the economic cycles of booms and recessions in the course of the growth and development of the country. In its latest national budget, the Singapore Government recognises the invaluable contribution of the pioneer generation by honoring them with its Pioneer Generation Package benefitting over 450,000 Singaporeans in the hope that it will provide them with a greater peace of mind that their healthcare costs will be taken care of in their golden years.

As Singapore continues to rise in the global economy, we must not forget the elderly and understand that they have the first hand experiences in raising children, making ends meet in challenging times, and looking after the aged when they were younger themselves. Their knowledge of cultural practices is invaluable in guiding the younger generation to sustain and promote the cultural identities of the respective ethnic groups in the country. For this reason alone, we should never look upon the greying generation as a collective problem to be resolved but rather as a potential resource to be harnessed so that all of us may benefit from their wisdom, ideas and experiences.

However, Singapore society needs to be consciously reminded that much more can be done for the aged even though about 450,000 Singaporeans are expected to receive benefits from the package.