National Day Rally

Its good news for the elderly in Singapore after the rally last night! It seems by next year, those who have pre-existing conditions and the elderly will also be accepted under Medishield Life! Even those who do not believe in insurance and opted out of Medishield (Really? Why would you do that!?) will now be automatically included. 

Medishield have just undergone a revamp March this year and this means that will be another revamp soon. Premiums have almost doubled for somebody age 21 to 30 years old in March this year from 30 plus dollars to $66 per year this March. And by the time you have about $2,000 in your medisave, the interest you earn from it will more or less cover the premium for your medishield. But this is for now. With the increase of coverage to cover for pre-existing conditions and coverage for life there maybe another round of premium increase next year but we still do not have to worry too much because I am sure even when we are old, the maximum cap on our medisave with the current interest rate of 4%, it still covers the premiums for Medishield.

Cap for Medisave Contribution = $38,500

Interest per year for Medisave = $1,540

For individual who is 51-60 years old, premiums for Medishield = $345.

Interest will nicely pay for the premiums with change. 

But of course there are many limitations in Medishield, if you are looking at staying in wards higher than B2 or C wards. 

If you are Singaporean and do not mind staying in a B2 ward or C ward you get 100% subsidy. If you are Permanent Resident here. Your subsidy is 44% and 58% respectively. If you are a foreigner on Medishield you only get 20% and 35% subsidy. 

If you decided to go with a private hospital you will only be subsidised 35%. 

In todays Straits Times (19 Aug 2013) article with the title 'Universal, Compulsory and for Life.' One health economist said:

'MediShield Life plugs the gaps in MediShield by extending basic cover to all. This is enough for the bulk of the population, so he is in favour of moving away from integrated shield plans provided by private insurers.

The important thing, he said, is to ensure "everybody is perceived not to be denied or deprived relative to other people".

This is a very dangerous statement to make as it is very irresponsible. My worry is again, a reliance on the Government to do everything for Singaporeans. One particular report on therealsingapore.com today was a 30 plus year old man who has an 8cm gash on his arm and fainted while waiting for treatment in A&E at CGH. They waited seven hours yet no doc to see them. They ask for transfer but no ambulance for them to use. The article is written by one who once again is pleading with the government to do something...................

Do something for yourself! Get a private integrated shield plan with the rider. Most plans come with ambulance fee covered. If you got the private hospital plan, go straight to a private hospital and get it done in 15 mins. You have a choice! The government have done that for you and given you that choice. Take it. But if you chose not to do it then its your fault and nobody elses's.

And to the health economist, your statement have just planted the idea that the government will do all.... they don't. Once again, what you do today echoes in eternity.

And if you are a Permanent Resident reading this, all the more you should get a private integrated shield plan. Ask your financial adviser about it. If you do not have one email me tngjinyau@gmail.com

Impossible To Retire in Singapore

How many times have we heard the phrase mentioned by Singaporeans? 'Singapore is getting too expensive.' 'How to retire here?' 'Government must do something'. It always irks me that many people expect the Government should do something for them, anything goes wrong its the Government. MRT breakdown, Government fault. Bus driver strike Government fault. Toilet breakdown, Government fault. Lorry knock down people, Government fault. I cannot retire, Government fault. 

The way I see it, many things are within the control of ourselves. Whether we can retire in future is very much dependent on the things we do today. For example, if you know you need to have 1 million in future at retirement, what do you do today? You save. But Tang, things getting more expensive in future! You save more. But Tang things so expensive now how to save? Why you never save earlier? But the truth is its all about managing your money. Too many of us (including me in the past) saves after spending. Our saving formula looks like that:

Salary - Expenses = Savings

But every month we have an excuse to spend on something or we want to go on a trip or there is a newly launched gadget or new season fashion or new handbag, new shoes, new everything... so Tang how to save?

Lets move the formula:

Salary - Savings = Expenses

Wa Tang like that no need to spend already. Well maybe, but  I dare bet that if your formula changes to the above you will definitely be able to retire. If you were to spend on one less gadget or one less holiday or even one less beer per week, you will have found some extra money to save for the future. 

If you believe that the above formula can work you will probably ask how much to set aside each month. Rule of thumb 10% to 20% of your current income will be a good start. As your salary increases (and I hope it does, if it doesn't please take a good hard look at yourself) you increase the saving amount to maintain the 10% to 20% ratio. 

Have a good mix of asset to ensure the monies you have set aside is moving your monies closer to the inflation rate. Yes property is a good hedge but please it should not be the only hedge. It is still an asset and the value will fluctuate. 

If you are currently planning for your retirement already, get a financial adviser to project and estimate the amount of retirement fund you will need and work backwards to ascertain the amount to save today towards your goal. This will give you a more specific amount to set aside on a regular basis. Once again, if this actually concerns you and you do not have somebody to speak to, please email me tngjinyau@gmail.com. Whatsapp or SMS me 9180 3448. My consultation is on a no-obligation basis and I do not charge a fee.... yet...