The document discusses the rising costs of healthcare in Singapore as people age and provides estimates of potential retirement healthcare expenses. It notes that healthcare costs, including hospital admission rates, increase significantly with age. Using the example of a person with diabetes, it estimates that additional healthcare costs could increase a person's basic living expenses by 13% or more. The document advocates creating a retirement planning calculator to help individuals better understand their potential healthcare costs and the amount of savings needed to cover expenses after retiring.

1. www.iss.nus.edu.sg/SmartHealth© 2015 National University of Singapore. All Rights Reserved. 1
HOW MUCH IS ENOUGH?
Catherine Khaw
Chief, Intelligent Systems
catherinekhaw@nus.edu.sg
COST OF AGING IN SINGAPORE

2. www.iss.nus.edu.sg/SmartHealth
We worry about these…
© 2015 National University of Singapore. All Rights Reserved. 2
http://population.sg/engagement/townhall/opening-address/#.Vt6h_Pl96M8
Opening Address by DPM Teo Chee Hean at the “Our Population, Our Future” Townhall Dialogue on 9 October 2012
(2000 feedback)

3. www.iss.nus.edu.sg/SmartHealth
How much is enough?
© 2015 National University of Singapore. All Rights Reserved. 3
http://www.channelnewsasia.com/news/singapore/retirement-planning-how/2640474.html

4. www.iss.nus.edu.sg/SmartHealth
Is S$1200 enough?
4© 2015 National University of Singapore. All Rights Reserved.
What are the assumptions?
 Excluding accommodation
 Today value of $
 Mobility is not an issue
 Perfectly healthy
 All chores can be done by
individual

5. www.iss.nus.edu.sg/SmartHealth
Will we be perfectly healthy after
retirement?
01/04/2016
8:39 am - smart
health
healthcare cost
© 2015 National University of Singapore. All Rights Reserved. 5
The use of medical care services rises with
age. Singapore hospital admission rate for
people aged 65 and above was increased
from 24% in 2006 to 29% in 2014.
In 2014, hospital admission rate for people
aged 65 and above ranged from 20% to 72%.
A large proportion of healthcare costs
associated with end of life care.
*Rate Per 1,000 Resident Population
https://www.moh.gov.sg/content/moh_web/home/statistics/healthcare_institutionstatistics/hospital_admissionratesbyageandsex/Hospital_Ad
mission_Rates_by_Age_and_Sex_2014.html

6. www.iss.nus.edu.sg/SmartHealth
Is Price going to increase, hold or
decrease?
© 2015 National University of Singapore. All Rights Reserved. 6
Increases in Healthcare CPI are much higher than General CPI.
https://www.moh.gov.sg/content/moh_web/home/statistics/Health_Facts_Singapore/Consumer_Price_Indices_CPI_and_Household_healthcare_Expenditure.html

7. www.iss.nus.edu.sg/SmartHealth
How much is enough for
expenses post retirement?
Depends on ….
lifestyle
Health
Target retirement age
Life expectancy
General inflation
Healthcare inflation
Investment/saving returns
7

8. www.iss.nus.edu.sg/SmartHealth
Methods for Estimating Expenses
(for individual)
 Cost Perspective
 Focusing on :
 Cost of medication and assistance required for
individual.
 Integrate with general price inflation and
healthcare price inflation to project future
value
 Assumptions
 Hospitalization and treatments are covered
by insurance/medishield.
© 2015 National University of Singapore. All Rights Reserved. 8

9. www.iss.nus.edu.sg/SmartHealth
Illness associated with Aging
• Expenditure
• Medications
• Care giver &/ Helper
• Health supplements
• Others ( diapers, …)
• Condition
• High blood pressure
• High cholesterol
• Diabetes
• Bones/Joint
• Arthritis
• Parkinsonism/dementia
• Malnutrition
• Osteoporosis + fall
© 2015 National University of Singapore. All Rights Reserved. 9

10. www.iss.nus.edu.sg/SmartHealth
Is S$1200 enough?
10© 2015 National University of Singapore. All Rights Reserved.
Other cost /month:
 Helper : $660 ++
 Supplement: $300
 High blood pressure : $35
 High cholesterol : $45
 Diabetes : $100 - $150
 Others $300

11. www.iss.nus.edu.sg/SmartHealth
Basic needs + Healthcare
(example diabetes medication + Mobility
assistance)
Basic Diabetes Assistance Supplement Others
© 2015 National University of Singapore. All Rights Reserved. 11
(8%)
(55%)
(25%)
(25%)
Basic $1200
(100%)
Medication + Care $1360
(113%)

12. www.iss.nus.edu.sg/SmartHealth
What is the cash value required
at year of retirement?
© 2015 National University of Singapore. All Rights Reserved. 12
25 years old Target retirement age
50 years old
Life Expectancy
80 years old
20162016 20412041 20712071
Living cost

13. www.iss.nus.edu.sg/SmartHealth
Retirement Planning Calculator
Goal :
• Create awareness of healthcare cost
and expenditure
• Motivate individual to consider
healthier lifestyle at their younger
days to avoid hefty future healthcare
cost burden
Key consideration:
• Current Age
• Target Retirement Age
• Life Expectancy
• Medical conditions
• General inflation for basic
expenditure
• Healthcare inflation
By Mtech EBAC Student :
Daniel, Jonathan, Edmond , Alan, Vivien, & Siong
© 2015 National University of Singapore. All Rights Reserved. 13

14. www.iss.nus.edu.sg/SmartHealth
Demo
Mrs Koo, is 39 years old, and overweight.
She enjoys rich and sumptuous meals like many
Singaporeans.
Her mother was diagnose with Type 2 diabetes at age
of 52 and had her limps amputated 5 years later.
Questions :
What is the cost of diabetes to Mrs Koh?
How much cash does she needs if she plan to retire
at 65 ?
© 2015 National University of Singapore. All Rights Reserved. 14

15. www.iss.nus.edu.sg/SmartHealth
Summary
We hope to
• create awareness of healthcare cost through
interactive mode.
• partner with health care industry players to
motivate individual to choose healthier lifestyle,
especially in their young days.
• encourage individual to start saving and invest
as early as possible.
• engage with industry players to fine tune
existing analytic project or conduct new
projects.
© 2015 National University of Singapore. All Rights Reserved. 15

16. www.iss.nus.edu.sg/SmartHealth
THANK YOU!
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