Singapore

1
Singapores Changing Age Structure Issues and
Policy Implications for the Family and State

• Angelique Chan
• Department of Sociology
• National University of Singapore

2
Singapores Demographic Dividend

• The post WW2 baby boom cohort and the States
  rapid march through the demographic transition,
  produced a demographic dividend for Singapore.
• The late 1970s and the 1980s were characterized
  by very high levels of economic productivity as
  Singapore capitalized on a large work force (the
  baby boomers) and enabling policies in the areas
  of public health, family planning, education, and
  the economy.

3
Singapores demographic transition

• In the late 1950s, Singapores Total Fertility
  Rate (TFR) was 6 children per woman.
• By 1975, efficient family planning policies
  achieved a TFR below replacement level of 1.9.
• Current TFR is 1.26 (2004).
• Pro-natalist policies having little effect.

4
The closing of Singapores demographic window of
opportunity

• Singapores population is aging rapidly.
• At present, life expectancy is 76.9 for men and
  80.9 for women (2003).
• Currently 7 (235,000) of the population is aged
  65 and above.
• By 2030, increase to 19 (796,000).
• Old age dependency ratio will increase from 110
  to 310.
• Appropriate policies must be put in place before
  the demographic window closes.

5
What has Singapore done?

• Since 1982, the Government has been aware that an
  aging population will pose social and economic
  issues.
• Various policy recommendations implemented, e.g.,
  changing the Central Provident Fund (CPF)
  contributions for older persons, legislation on
  minimum standards for old age homes, increasing
  elderly dependants tax relief, legislation on
  filial piety.
• On 1st January 1999, retirement age changed from
  60 to 62.

6
Most recently

• In 1998, Inter-Ministerial Committee on Aging
  (IMC) formed to address six main areas financial
  security, employment, housing, health, social
  integration, and cohesion and conflict.
• I discuss what policies the government has in
  place to prolong the demographic dividend or
  reduce the negative impacts of population aging
  as the demographic window of opportunity closes.
• My focus is on financial security, employment,
  living arrangements, and health.

7
Financial Security

• Central Provident Fund established 1955.
• Mandatory, individual save-as-you-go scheme.
• Special (retirement) account minimum sum,
  80,000 (as of July 2003).
• Yields monthly annuity of 613.
• CPF has highest coverage of any retirement plan
  in Asia
• Highly efficient savings mechanism for
  Government. Contributes between 16 and 30 to
  gross national savings rate.
• Only 24 of individuals in 1999 can meet minimum
  sum after withdrawals for housing, investments,
  and other schemes (e.g., childrens education).

8
Most older Singaporeans have little or no CPF
savings
9
Old age and economic security

• Today, most older adults (59) rely on children
  for financial support
• 79 Chinese
• 63 Malay
• 44 Indian
• Government policy Old age financial security is
  an individual responsibility. Family expected to
  care for older members who cannot care for
  themselves.
• 1996 Parental Maintenance Act.

10
Family under stress

• Policies to assist families to take care of older
  adults financially need to be set in place.
• Increasing longevity, delayed childbearing, lower
  fertility, and increasing rates of non-marriage,
  create a situation where middle-aged adults are
  stretched financially and emotionally to care for
  older parents and young children. Unmarried
  adult children hard pressed to provide financial
  security and care to older parents.

11
Recommendations of the IMC

• A basic needs CPF model
• Basic living expenses, medical and housing needs
• Step up contribution rates for the Special
  account
• Opportunities to remain employed
• Allow private sector financial investment
• Strong public education program
• Take Charge, Start Early.

12
Employment

• Data from 1999 show 16 of older adults (59)
  employed, and 5 looking for work.
• Older males are 3 times more likely to work
  compared to older females.
• Older adults continue working to continue an
  active life (28), to combat boredom (26) or
  because of financial need (25).
• Older workers face employer discrimination in
  hiring.

13
Foreign talent

• As Singapores old age dependency ratio rises,
  recruiting foreign professionals to meet
  shortfalls in manpower. Currently make up 9 of
  the professional workforce.
• Between 1991 and 2000 contributed 37 to
  Singapores gross domestic product.
• Foreign professionals often granted permanent
  residence to maintain population levels and boost
  human resource productivity.
• Response of local population mixed.
• Public concern about growing competition for
  diminishing numbers of jobs.

14
IMC recommendations on employment

• Policy Help older Singaporeans to remain
  employable by
• Retraining
• Educating employers and employees
• Provide information, training, and job placement
  services
• Increase employment opportunities, e.g., promote
  flexi-time, part-time work.

15
Living arrangements

• Singapore has one of the highest co-residence
  rates in Asia. In 1999, 78 of older adults
  (60) live with at least one adult child.
• Government policies encourage co-residence both
  as a moral obligation of adult children to older
  parents and an attractive financial arrangement.
• Co-residence thought to promote older adult
  well-being.

16
Living arrangements, by type among Older
Singaporeans (59) in 1999
17
Living arrangement policies

• Policies to encourage co-residence include tax
  incentives and priority housing.
• Recently, government has focused on creating more
  housing options for older adults who choose to
  live alone or with a spouse only, e.g., studio
  apartments in HDB estates that have been
  retrofitted with elder-friendly features (such as
  non-slip flooring, wheelchair access).
• Government promotes aging-in-place.

18
Will the high levels of co-residence in Singapore
last?

• Consistent and far-reaching government programmes
  encouraging family support, in addition to high
  housing costs and lower marriage rates may result
  in the maintenance of high co-residence levels.
• However, co-residence should not be equated with
  older adult well-being. Need to understand what
  is going on within the household.
• In many cases, older adults are living with
  children because their children have not yet
  moved out of home.

19
Health Care

• Most older adults (60) have medical insurance
  accounts (Medishield), however, the amounts in
  these accounts vary widely.
• Older Singaporeans are on average in good health
  50 report good health, 37 report fair health,
  and 13 report poor health.
• Rates of functional disability (in Activities of
  Daily Living) range from 4-10 depending on the
  age group.
• Hypertension is the main reported chronic health
  problem.

20
Recent policy initiatives

• Eldershield.
• Develop private nursing homes
• Develop multi-task care staff
• Harness VWOs to provide more care.

21
Specific attention needs to be paid to

• Gender differences in health status, approaches
  to preventive medicine, and health-seeking
  behavior. E.g., women suffer from more chronic
  diseases and are more likely to seek medical
  treatment compared to men.
• Ethnic differences in the above. E.g., older
  Indians are significantly more likely to report
  poor self-assessed health and at least 1 chronic
  condition compared to older Chinese. Older Malay
  women are least likely to report a chronic
  condition or a functional disability compared to
  older Chinese women.

22
Conclusion

• Singapores rapid demographic transition and the
  demographic dividend it produced spurred the
  States economic development.
• Today, as Singapores population ages, increases
  in the old age dependency ratio could hamper
  economic growth.
• Population aging also poses extreme challenges to
  families charged with caring for older adults.

23
Employment and financial security

• Employment Government policies to extend the
  number of years an older person can remain
  employed may lower the old age dependency ratio.
• Financial Security Similarly, policies to
  increase individual financial security in old age
  may decrease the level of dependence of older
  adults on family members and society.

24
Living arrangements and health

• Living arrangements. Expanding housing options
  for older adults while continuing to promote
  co-residence may enhance family support.
• Health. Policies to cater for increasing health
  care costs at older ages, such as Eldershield,
  may better prepare older Singaporeans to meet
  their health care needs over time and decrease
  reliance on family members.