Ever wonder what does the Prime Minister’s Office (PMO) do?
When they are not handing artefacts to National Heritage Board, the PMO tracks the demographics in Singapore.
A paper named Population In Brief is published annually so that the public knows that they are actually working.
The national indoctrination news journalists pick out the positives from the research paper and report that everything is great in this island state.
Sometimes, they treat us like idiots and churn out classics such as this.
Sure, there are fewer work permits issued and more marriages between citizens.
Good for them.
What does it do for you?
Thankfully, we are around to examine the report.
And extract some really useful figures.
For you to review if these demographic changes actually affect your insurance needs.
Let us bring out our magnifying glass and start investigating!
Lowering fertility rate.
Resident’s fertility rate drops from 1.24 in 2015 to 1.20 last year.
In actual numbers, that is 558 fewer babies in 2016.
This is not a new problem.
The fertility rate has dipped below replacement level since the late 1970s.
But it is really affecting us now.
If you are a middle-aged adult, you are likely to have one or no sibling.
Your parents have retired.
You may have a kid or two of your own.
Despite your considerable load, you still have to take care of your parents financially.
Although it is not really your fault, this is the reality.
Insurance-wise, you just have to protect yourself better.
Not just in terms of sum assured but also in terms of different scope.
Critical illness, early ones, disability-income, etc.
Or you can walk around in a bubble suit.
People are getting older.
No shit Sherlock.
There are more older folks around than last year and there will be even more of them in the future.
What should we do about them?
Build more nursing homes and studio apartments?
Unfortunately, that is not our decision to make but the government’s.
What we can do is to make sure that our parents have adequate health insurance.
The compulsory Medishield Life is insufficient.
An Integrated Plan is a must-buy for your parents.
With an ageing population, long-term care becomes an utmost concern.
Upgrading of the Eldershield is a small step towards alleviating the financial burden when one becomes disabled.
It is not a huge claim payout but the monthly payment should help defray the cost of hiring a helper at home.
Declining support ratio
Not so old yet?
But it is time for you to start planning for your retirement properly.
The citizen old-age support ratio is declining.
What it means is that for every old (above 65) person in Singapore, there are only 4.4 working adults.
It is expected to be even lower in the future.
As old-age support ratio continues to pummel, it is logical to assume that you are not going to get much help from the government.
First, they will have a smaller working population to tax.
And also because the government has historically proven that they are not inclined to help.
Lastly, we do not want to be a burden to our offsprings.
To ensure that you live a retirement life that you have always envision, you must start planning now.
With proper insurance in place and a solid investment plan, you should be able to enjoy your golden retirement with little financial worry.
More Singaporeans are residing elsewhere
We are travelling more due to the better global connectivity.
At times we stay in a foreign land for long period due to work, marriage or simply to evade NS.
As a result, more Singaporeans are located overseas.
What does it mean to you?
If you are one of those 214,700 Singaporeans that are not residing here, your insurance needs may be very different.
You may not have CPF or sufficient money in it to purchase national insurance such as Medishield Life, DPS or Eldershield.
Hence, you must look into the substitutes that are available to you.
Most countries are more dangerous than Singapore.
Higher crime rate, natural disasters and political instability are among the various associated risks of staying abroad.
You have to take them into consideration and possibly obtain a Personal Accident plan to cope with contingencies.
Medical cost concerns are omnipresent.
An International Medical Insurance is the way to allay them.
People are marrying later or not at all.
This is especially true when you compare it to 10 years ago.
We are not going to be your mother who nags incessantly at you to get hitched.
However, we like to remind you to take care of yourself.
And to have the right insurance coverage.
We are living longer but having less healthy years.
While we can exercise and eat right to increase our healthy years, there is no guarantee that diseases and accidents will not happen to you.
Having an Early CI plan is critical.
A well-rounded healthcare plan with Integrated Plan and rider must be pursued.
Of course, you may not be actually single.
You prefer companionship over paying for a marriage cert.
And you have sufficient insurance.
Make sure you get your will or nomination so that your companion stands to benefit from your prudent insurance planning.
Review if applicable.
Statistics do not lie.
But they may not apply to you.
You may have multiple siblings.
Your parents are financially independent.
And you are happily married in Singapore.
Congratulations, you are a statistical abnormality!
For the rest of us who may live a more average Singaporean life, these are certain demographic changes that you must take note and see if it is applicable to your situation.
Not too sure what to do?
Our really smart Robo-advisor can help you discover your insurance needs in a matter of minutes!
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