Commentary urges financial resilience for Singapore's super-aged households
A commentary by Duke-NUS and NUS academics warns that ageing Singaporean households, with about 90 per cent of wealth tied up in housing and CPF, may face financial precarity from health shocks. It calls for better understanding of net wealth, insurance trade-offs, and options like rightsizing to re
SINGAPORE: A commentary published by CNA on 3 Nov 2026, authored by Duke-NUS Global Health Institute’s Daniel Mahadzir and NUS Distinguished Senior Fellow Stanley Sia, examines whether Singapore’s super-aged households have sufficient financial buffers to weather unexpected shocks.
The authors note that while real incomes have grown over the past decade, a significant portion of household wealth is held in housing and Central Provident Fund (CPF) savings. Among lower- and middle-income households, those two relatively constrained asset pools account for about 90 per cent of total wealth in lower-wealth households, and around 80 per cent to 85 per cent even for a middle household. With wealth tied in illiquid assets, an illness or unexpected caregiving duty may expose a financial vulnerability, from immediate medical costs to long-term health expenses and income loss.
Life expectancy at birth in Singapore has risen to about 84 years, among the highest in the world, yet Singaporeans still spend roughly a decade of those years living in ill health. Those who reach age 65, which will be the retirement age from 1 Jan 2029, can expect to live another 21.6 years on average. Financial precarity for ageing Singaporeans often features falling incomes, rising essential costs such as healthcare and utilities, and limited liquid wealth outside the home and CPF.
The commentary highlights trade-offs in insurance coverage and affordability. Premiums for national schemes and private plans rise with age, as each age group pays for its own expected claims. In a September parliamentary reply, the Ministry of Health said the number of private insurance downgrades and discontinuations had increased: for Integrated Shield Plans (IPs), there were 128,200 in 2025, up from 99,000 in 2023; for IP riders, the number more than doubled to 181,800 over the same period. MOH said it does not track the reasons for giving up insurance plans, which could include affordability concerns or right-sizing coverage.
The government has been adjusting policy, raising CPF contribution rates for workers aged 55 to 65 in 2026, with a further increase scheduled for 1 Jan 2027, and providing a one-off CPF top-up for older Singaporeans with lower balances and expanding subsidies for long-term care. The authors argue that financial resilience in old age is part policy support and part personal preparation, urging families to understand their net wealth, draw on assets deliberately, and consider options such as rightsizing to a smaller flat or using the Lease Buyback Scheme to release equity while keeping familiar support networks.
