Spotlight on options to supplement income in retirement

Private annuity plans and schemes can support payouts, long-term care: Analysts

- Chor Khieng Yuit

Working adults will have to look after more than one generation of seniors in the future, a challenge that is becoming a norm as Singaporeans live longer and the population ages at a faster pace.

But in terms of finances, Singapore's national annuity and medical schemes will provide a base for retirement, while income can be supplemented by private annuity plans and schemes, such as a housing lease buyback programme, say analysts.

Globally, efforts are also being made to cater to the needs of an ageing society, including tackling long-term care through more flexible insurance products.

Ageing is gathering pace in Singapore. By 2050, it will join Japan, Hong Kong and South Korea as economies in Asia with a large share of people aged 65 or older, according to the World Social Report 2023 from the United Nations.

The Republic will be in ninth spot, with 34.2 per cent of its population in that age range; Hong Kong will take top spot with 40.6 per cent; South Korea, second at 39.4 per cent; and Japan, third at 37.5 per cent.

The growing number of residents aged above 65 presents challenges, said reinsurer Swiss Re.

Speaking to The Straits Times, its global chief executive of life and health reinsurance Paul Murray said: "When we think about retirement, we think about supporting our parents as well as ourselves. In this future that we face, we might have to support two generations of parents and grandparents. It is becoming the norm."

The Population in Brief 2023, an annual publication by the National Population and Talent Division and partner agencies, showed that the number of citizens aged 80 and above increased by 70 per cent from 80,000 in June 2013 to 136,000 in June 2023.