What Healthcare May Cost After Retirement in Singapore

Planning for retirement usually starts with the fun stuff—travel, hobbies, and enjoying free time. But as our regular income stops, one expense unpredictably grows: healthcare. While medical costs can feel overwhelming, preparing for them doesn’t have to be. Here is a practical look at what healthcare may really cost in your golden years, and how to build a flexible plan that protects both your health and your savings.

When we think about how much we need for retirement, most of us start with the familiar expenses — food, utilities, transport, holidays and perhaps some money for hobbies.

Healthcare is a little different.

It is difficult to predict, and unfortunately, it is one expense that may increase just as our regular income starts to decrease.

That doesn’t mean we should assume the worst or put aside an enormous sum “just in case”. But it does mean healthcare deserves a place in our retirement planning.

There isn’t one healthcare number that suits everyone

You may have come across estimates of how much a retiree should set aside for medical expenses.

I find these numbers useful as a reference, but not necessarily as a personal target.

Two people of the same age can have very different healthcare expenses.

One may remain relatively healthy and mainly need routine check-ups and medication. Another may require regular specialist treatment. Someone who prefers private hospitals will also face very different costs from someone comfortable using subsidised public healthcare.

So instead of asking:

“How much will healthcare cost me?”

Perhaps a more useful question is:

“What healthcare expenses might I need to pay for, and how much of them am I already protected against?”

1. Everyday healthcare costs

Not every medical expense involves hospitalisation.

In fact, some of the expenses we are more likely to encounter are the smaller, recurring ones:

• GP and polyclinic visits
• Regular medication & vaccinations
• Specialist consultations
• Health screenings
• Dental treatment
• Eye care and spectacles
• Physiotherapy and rehabilitation
• Medical equipment or mobility aids

Individually, these may not seem particularly large.

But over 20 or 30 years of retirement, regular healthcare expenses can add up.

This is one reason I think our retirement budget should include a monthly allowance for ordinary healthcare, rather than only preparing for a major hospital bill.

2. Hospitalisation and major treatment

This is the expense most of us worry about.

Singaporeans and Permanent Residents have MediShield Life, while many people also have an Integrated Shield Plan or other medical insurance.

These can provide substantial protection, but insurance does not necessarily mean every dollar of our medical bill will be paid.

Depending on the treatment, hospital, ward and insurance coverage, there may still be deductibles, co-insurance and expenses that we need to pay ourselves.

It is therefore worth understanding our insurance before we need to use it.

Ask yourself:

If I were admitted to hospital tomorrow, do I know what my insurance covers and roughly how much I might have to pay myself?
If the answer is “I’m not really sure”, you’re probably not alone.

We’ll look at MediShield Life and Integrated Shield Plans separately in another article.

3. The cost of keeping our insurance

There’s another healthcare expense that is easy to overlook.

The insurance premium itself.

While we’re working, an annual medical insurance premium may simply be another bill to pay.

After retirement, it comes from our retirement income or savings.

More importantly, premiums generally become more expensive as we get older.

So when reviewing an Integrated Shield Plan, don’t only ask whether you can afford the premium today.

Ask:

“Will I still be comfortable paying this when I’m 70, 75 or 80?”

That may lead to a different decision.

The best medical plan isn’t necessarily the most expensive one. It is the one that gives us appropriate protection that we can realistically maintain.

4. Healthcare may eventually become care

This is probably the part of retirement healthcare planning that receives less attention.

There may come a stage when the expense isn’t primarily about seeing a doctor.

We may need help with daily living.

That could include:

• Home nursing
• Home personal care
• Rehabilitation
• A domestic helper or caregiver
• Day-care services
• Mobility equipment
• Nursing-home care

Singapore has schemes such as CareShield Life and various government subsidies that can help with long-term care expenses.

But depending on the level and duration of care required, families may still have additional costs to meet.

This is something worth thinking about while we’re healthy enough to make our own decisions.

So how much should we actually set aside?

I don’t think there is a single figure that everyone should aim for.

A more practical approach is to think of healthcare funding in three layers.

Layer 1 — Regular healthcare

Include a reasonable amount in your normal retirement budget for doctor visits, medication, dental care, screenings and other routine expenses.

Layer 2 — Major medical expenses

Understand what MediShield Life, your Integrated Shield Plan (if you have one), MediSave and other insurance will cover — and what you may still have to pay yourself.

Layer 3 — A healthcare reserve

Keep some accessible savings for unexpected healthcare expenses that aren’t fully covered.

The amount will be different for everyone.

Someone with good insurance, substantial MediSave savings and a preference for subsidised healthcare may need a different reserve from someone who wants access to private hospitals and specialists.

A simple retirement healthcare check

Before worrying about whether you have saved “enough”, start by answering these questions:

1. What medical insurance do I currently have?
2. What type of hospital and ward am I comfortable using?
3. How much are my insurance premiums now?
4. What might those premiums look like as I get older?
5. How much do I have in MediSave?
6. What regular healthcare expenses am I already paying?
7. Do I have accessible savings for expenses that aren’t covered?
8. Have I thought about how I would pay for long-term care?

You don’t need to solve everything at once.

Even answering these questions will give you a much clearer picture of where you stand.

Healthcare planning isn’t about predicting illness

None of us knows what our health will be like ten or twenty years from now.

That’s precisely why I don’t think retirement healthcare planning should be about trying to predict every possible medical bill.

It’s about putting a few sensible layers of protection in place.

Understand what the government schemes provide. Know what your insurance covers. Keep some money accessible for the gaps. And, just as importantly, look after your health while you can.

After all, our retirement savings aren’t there just to pay medical bills.

They’re there to help us enjoy the years we’ve worked so hard for.

---

This article is for general information and sharing only. Healthcare schemes, subsidies, insurance coverage and premiums can change over time. Please check the latest information from the relevant official agencies and your insurer before making financial or insurance decisions.