Some shiok financial relief for ah ma and ah gong

08 Jul 2019 

​We want the best for our grandparents — for them to enjoy their golden years as stress-free as possible. And one important aspect of that is for them to be financially free. 

However, aside from their CPF savings, what other areas can they tap into for a secure retirement? 

Check out some of these government efforts to aid the silver generation with their healthcare expenses and retirement needs!

Some shiok financial relief for ah ma and ah gong.png

For healthcare

1. Flexi-MediSave

Flexi-MediSave allows all elderly to use more of their MediSave for outpatient medical care. 

​Singaporeans aged 60 and above can tap on their own or their spouse’s MediSave Account (MA) — provided that the spouse is also aged 60 or above — to pay for outpatient treatments at Specialist Outpatient Clinics and polyclinics in the public sector, and general practitioner clinics under the Community Health Assist Scheme (CHAS). Each patient can use up to S$200 per year.

2. MediSave top-ups 

The Pioneer Generation will also receive $200 - $800 annual top-ups to their MediSave for life, depending on their age. Older cohorts will receive more.

Born 1934 or earlier
Born 1935 - 1939$600
Born 1940 – 1944
Born 1945 – 1949 $200

The Merdeka Generation will also receive $200 MediSave top-ups annually for five years, from 2019 to 2023.

Pioneers and Merdeka Generation seniors may use these top-ups for their hospitalisation bills, day surgery fees, and certain approved outpatient treatments. 

They can also use it to pay for their MediShield Life insurance premiums and other MediSave-approved insurance plans.

3. MediShield Life premium subsidies

All Pioneers also enjoy 40% to 60% subsidies on their MediShield Life premiums, depending on their age. This is on top of the $200 – $800 MediSave top-ups mentioned above, which they can use to offset their MediShield Life premiums.

Meanwhile, the Merdeka Generation will receive an additional 5% subsidy on their annual MediShield Life premiums, which will increase to 10% after they turn 75 years old, regardless of their household income and Annual Value of their residences. This is on top of the existing premium subsidies that the seniors may receive. Merdeka Generation seniors can use the annual $200 MediSave top-ups mentioned above to pay for their MediShield Life premiums.

MediShield Life Premium Subsidy for Merdeka Generation seniors
Your Age at Next Birthday (at the point of policy renewal)*Current Subsidy#Merdeka Generation SubsidyTotal Subsidies
60 to 75
years old
Up to $341.25
(Up to 35% of your
annual premium)
$31.50 to $48.75
(5% of your annual
Up to
76 years old
and above
Up to $765
(Up to 50% of your
annual premium)
$113 to $153
(10% of your annual
Up to
*If your MediShield Life policy is due for renewal between 1 July 2019 and 31 October 2019, you will receive the Merdeka Generation premium subsidy as a refund by 31 December 2019.
#Existing premium subsidies are available for lower- to middle-income families. Please refer to www.moh.gov.sg/medishield-life/medishield-life-premiums-and-subsidies for more information.

For additional retirement income

1.  Silver Housing Bonus (SHB)

Seniors aged 55 and above who choose to right-size their homes to a 3-room or smaller flat can enjoy additional income to pad their retirement funds. 

The net sale proceeds from their flat are used to top up their Retirement Account (RA) up to the Full Retirement Sum (FRS), which will provide them with higher lifelong monthly payouts on CPF LIFE

Upon topping up their RA using some of the net sale proceeds, they will receive a cash bonus of up to $20,000 per household when they apply for the SHB.

If they have right-sized to a resale flat within 4km of their children’s homes, they can also enjoy a $20,000 Proximity Housing Grant for the flat purchase.

Read more on the Silver Housing Bonus here.

2. Lease Buyback Scheme (LBS)
Another option for seniors to earn additional income is to sell part of their flat’s lease with the Lease Buyback Scheme. Those aged 65 and above can choose the length of their lease to retain, based on the age of the youngest homeowner.

For households with 1 owner:
The net proceeds from selling the tail-end of the lease will be used to top up the homeowner’s RA up to the current FRS. The balance proceeds can then be enjoyed in cash. 

For households with 2 or more owners:
The net proceeds will be used to top up each owner’s RA to the current age-adjusted Basic Retirement Sum (BRS). After topping up their RAs, the household may retain the proceeds in cash, up to $100,000. If there are any remaining proceeds (after the top-up and setting aside of $100,000 cash), they will be used to further top up the owners’ respective RAs to the current FRS, before they can retain any balance in cash.

After topping up their RA, homeowners will also receive a cash bonus of up to $20,000 (depending on the flat type).

To find out more on the eligibility and terms and conditions for LBS, read here.​

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