Transcript Singapore’s Changing Age Structure: Issues and Policy

Singapore’s Changing Age
Structure: Issues and Policy
Implications for the Family
and State
Angelique Chan
Department of Sociology
National University of Singapore
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Singapore’s Demographic Dividend
The post WW2 baby boom cohort and the
State’s 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.
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Singapore’s demographic transition
In the late 1950s, Singapore’s 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.
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The closing of Singapore’s
demographic window of opportunity
Singapore’s 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
1:10 to 3:10.
Appropriate policies must be put in place before
the demographic window closes.
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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.
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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.
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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., children’s education).
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Most older Singaporeans have little
or no CPF savings
60
50
40
30
20
10
0
<$20,000
$20,000-$39,999
$40,000+
None
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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.
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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.
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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.”
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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.
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Foreign talent
As Singapore’s 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
Singapore’s 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.
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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.
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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.
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Living arrangements, by type among
Older Singaporeans (59+) in 1999
80
70
60
50
40
30
20
10
0
Alone
Spouse only
Children
Others
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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.”
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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.
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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.
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Recent policy initiatives
Eldershield.
Develop private nursing homes
Develop multi-task care staff
Harness VWOs to provide more care.
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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.
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Conclusion
Singapore’s rapid demographic transition and
the demographic dividend it produced spurred
the State’s economic development.
Today, as Singapore’s 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.
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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.
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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.
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