In his Budget 2025 speech, Prime Minister and Minister for Finance Lawrence Wong announced that subsidies for residential, home and community long-term care services would increase by up to 15% and the Home Caregiving Grant would increase to S$600 per month. Additionally, the maximum qualifying per capita income for these initiatives would be raised to S$4,800, ensuring greater support for elderly Singaporeans in need of long-term care and family caregivers. (Get the highlights of PM Wong’s speech in our Budget 2025 recap.)

Like a pineapple, long-term care can be a bit of a prickly issue. No one likes to think about needing long-term care, be it for ourselves or our loved ones. However, it’s a reality we can’t ignore here in Singapore, where the population is ageing faster than my attempts to stop reckless snacking. Statistics show that one in two healthy Singaporeans aged 65 could end up with a severe disability¹.

With half of them potentially facing this challenge for four years or less, and three in 10 possibly enduring a decade or more¹, it’s time to face reality: long-term care expenses. A 2024 Singlife study revealed that the average amount spent monthly on long-term care for a loved one is S$2,952² – that’s almost S$3,000.

S$2,952 – a heavy long-term care expense for most families in Singapore

With the median monthly income in Singapore at around S$5,500³, that S$2,952 could feel like a punch in the gut. Long-term care costs can span months, years or even decades. It’s like the never-ending subscription to a service you didn’t sign up for. And just like the price of my favourite honey-roasted nuts, long-term care costs have been increasing. The current figure is a whopping 27% increase over 2018 when a similar study was done.

Like 37% of respondents in the Singlife study, I initially thought long-term care expenses would amount to under S$2,000 each month. My lack of personal experience in this area might explain why my guess fell short of the actual figure.

So, what does that average S$2,952 actually cover? Let’s break it down…

Breaking down long-term care costs

In the Singlife study, caregivers shared how much they spent on nine different categories of caregiving costs. Here’s a detailed description to help you understand what each one encompasses:

▪ Food and daily necessities: S$469
Think special dietary supplements or adult diapers – because ageing can bring surprises. Due to their limited food intake, swallowing difficulties or tube feeding, some individuals may even need special formula foods. Don’t forget utilities and personal hygiene products; nobody wants to skimp on soap.

▪ Nursing home services: S$430
When family caregivers or domestic helpers need a breather, nursing homes swoop in like superheroes, providing personal care, meal prep, medical escort and even social activities.

▪ Medicine: S$391
Regular medication for chronic conditions is essential to prevent complications and for a better quality of life. In the case of an individual with dementia, taking certain medication like donepezil can help manage some symptoms and potentially slow down the progression of dementia.

▪ Home equipment/modification: S$369
This covers everything from wheelchairs to ramps and slip-resistant flooring, because sliding across the bedroom floor isn’t the kind of adventure we’re going for in our golden years. Certain individuals may even need a ventilator and consumables to help them breathe.

▪ Nursing services: S$361
For those who need homebound care, think of nurses as MVPs (Most Valuable Players), taking care of wounds and tube changes, administering injections and monitoring vital signs, all while encouraging care recipients.

▪ Medical appointments: S$335
Regular visits to specialists help to keep pesky health issues in check. Other than the consultation itself, there may be tests, scans and treatments.

▪ Physiotherapy: S$277
Ongoing physiotherapy helps keep care recipients’ joints moving and their spirits high. It’s like personal training to improve functional skills and make daily activities easier. The frequency of sessions could vary from several times a week to monthly sessions.

▪ Transport: S$166
Whether it’s taxis, wheelchair-accessible vans or ambulances, getting to appointments – be it medical or social-related – can feel like a mini expedition that needs special attention and a travel budget.

▪ Others: S$154
Aside from TCM treatments, special immunity-boosting food, special clothing and even sterilising items, this is where some of the fun stuff lives – think psychological support, leisure activities, and maybe even the occasional kueh stash for emergencies.

3 caveats on the average monthly spend for long-term care

Now that we’ve unravelled the S$2,952 beast, keep these points in mind:

1. Caregiver expenses are often overlooked.

Let’s not forget about caregivers – unsung heroes who need support themselves. After all, superhero suits aren’t cheap. When I was guessing the average monthly long-term care cost, I focused on the needs of the care recipient when in fact caregiver expenses and costs should also be factored.

- Caregivers face income loss. This could be full or partial income, depending on whether they stop work altogether or work fewer hours to care for their loved one. If the caregiver is a working parent who is also supporting their own children, this income loss could impact their ability to provide for other family members.

- Caregivers have their own needs. As caregiving for a severely disabled family member is highly demanding, the caregiver may need external support in the form of professional counselling. They may even take time out for self-care activities like watching a movie or going for a relaxing massage on days when they don’t provide care for their loved one.  

2. This is just an average.

Actual long-term care costs can vary wildly. Typically, the more Activities of Daily Living (ADLs) someone can’t perform, the higher their long-term care costs, and vice versa. The six ADLs are washing, toileting, walking or moving around, transferring, feeding and dressing. The standard of care one opts for and their eligibility for long-term care subsidies or grants will also affect their expenses.

3. Inflation will increase costs.

As a 30-year-old reading this, spending S$2,952 on long-term care for yourself or a loved one might seem like a lot of money if you’re already weighed down by things like a home loan, wedding loan and childcare costs. With healthcare inflation at around 10%, this figure would be far more by the time you’re in your sixties and retired. That’s something to chew on when making financial plans for the future.

Parting thoughts

Long-term care readiness is essential in our rapidly ageing society – a reality check if you will, bundled up in a reminder to save. By taking proactive steps, I can ensure I have the necessary funds to maintain or even improve my quality of life should I need elderly long-term care in future. That way, I can live at home or in a nursing home and pursue a lifestyle and the activities I like with as much autonomy and dignity as possible – and with minimal impact on my loved ones.

While some view their home as a potential asset to cover future care costs, there are other ways to secure a comfortable future. A combination of government support and long-term care insurance can provide a safety net that’s more reliable than my New Year’s resolution to save.

For instance, the national CareShield Life long-term care insurance scheme gives lifelong monthly payouts starting from S$612 upon severe disability. You can enhance this with optional government-approved supplementary plans for payouts of up to S$5,000 per month on top of CareShield Life payouts, ensuring access to the care you need. Plans like Singlife CareShield Standard / Plus offer additional payouts like the caregiver benefit, and you can add on a separate dementia insurance plan which will further help cover out-of-pocket expenses and boost financial resilience while keeping your savings intact.

By making financial plans today, I can worry less about long-term care in the future.

^Notes

^{1. Source: Ministry of Health, “Why do you need to plan for your future long-term care needs?”, accessed on 26 February 2025.}

^{2. Source: Singlife LifeStuff, “Are young families prepared for their long-term care needs?”, accessed on 26 February 2025.}

^{3. Source: The Straits Times© Singapore Press Holdings Limited, “Real median income in Singapore grew 3.4% in 2024, gap with lower-wage workers narrows: MOM”, 28 November 2024.}

^{This policy is underwritten by Singapore Life Ltd.}

^{The content of the blog – LifeStuff is published for general information only and does not have regard to the specific investment objectives, financial situation, and particular needs of any specific person. The objective of this blog is merely for educational purposes and is not intended to serve as legal, tax, investment or accounting advice and nothing contained here shall constitute a distribution, an offer to sell or the solicitation of an offer to buy. Accordingly, no warranty whatsoever is given, and no liability whatsoever will be accepted by Singapore Life Ltd for any loss arising whether directly or indirectly as a result from you acting based on this information.}

^{You may get a copy of the Product Summary from Singapore Life Ltd and the participating distributors’ offices. You should read the Product Summary before deciding whether to purchase the product. You may wish to seek advice from a financial adviser representative before making a commitment to purchase the product. If you choose not to seek advice from a financial adviser representative, you should consider whether the product in question is suitable for you. This blog is not an insurance contract. Full details of the standard terms and conditions of this policy can be found in the relevant policy contract.}

^{This advertisement has not been reviewed by the Monetary Authority of Singapore.}

^{This policy is protected under the Policy Owners’ Protection Scheme which is administered by the Singapore Deposit Insurance Corporation (SDIC). Coverage for your policy is automatic and no further action is required from you. For more information on the types of benefits that are covered under the scheme as well as the limits of coverage, where applicable, please contact Singapore Life Ltd or visit the GIA or SDIC websites (www.gia.org.sg or www.sdic.org.sg).}

^{Information is accurate as at 07 March 2025.}