Sustaining, Living, Caring JDC-Eshel 50th Anniversary Conference 15 - PowerPoint PPT Presentation

ENGAGING MINDS, EXCHANGING IDEAS Singapore’s Ageing Preparedness: Sustaining, Living, Caring JDC-Eshel 50th Anniversary Conference 15 May 2019

Outline of Presentation • Overview of Singapore’s Ageing story • How Shall We Sustain Ourselves? • How Well Can We Age-In-Place? • How Shall We Care For Ourselves? 2 Engaging Minds, Exchanging Ideas

Demographic transitions: Rapid ageing Singapore’s Resident Population (1980-2100) Proportion of population aged 65+ 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% 1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050 2060 2070 2080 2090 2100 Japan South Korea Singapore Israel Source: United Nations, Department of Economic and Social Affairs, Population Division (2017). World Population Prospects: The 2017 Revision, Medium fertility variant estimates for 2020-2100 3 Engaging Minds, Exchanging Ideas

Shrinking households, families Resident Households By Household Size, number of persons 5.50 4.87 5.00 4.50 4.00 3.50 3.24 3.00 2.50 2.00 1980 1986 1990 1994 1998 2002 2006 2010 2014 2018 Source: Department of Statistics, Population Trends 2018 4 Engaging Minds, Exchanging Ideas

A society shaped by migration Singapore's Population by Residency Status 1970-2017 6,000,000 5,000,000 1,646,457 4,000,000 526,619 311,264 3,000,000 112,132 2,000,000 3,439,177 1,000,000 0 1970 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 Citizens Permanent Residents Non-PR foreigners Source: Department of Statistics, Population Trends 2018 5 Engaging Minds, Exchanging Ideas

Singapore’s Ageing Population Preparedness • 1980s - Report of the Committee on the Problems of the Aged • 1990s - Inter-Ministerial Committee on the Ageing Population (1999) • 2000s – Eldercare Masterplan (AY2001-2005) Report; Committee on Ageing Issues report (2006) • 2016 – Action Plan for Successful Ageing 6 Engaging Minds, Exchanging Ideas

Action Plan For Successful Ageing 2016 Ten Focal Areas: 7 Engaging Minds, Exchanging Ideas

Our Sustaining, Living and Caring themes Sustaining ourselves How can we Age-in- Place How will we care for each other? 8 Engaging Minds, Exchanging Ideas

Picture source: rikvin.com JDC-Eshel 50 th Anniversary Conference How Shall We Sustain Ourselves? 9 Engaging Minds, Exchanging Ideas

Retaining High Labour Force Participation Rates Labour Force Participation Rates (55-64 and 65-69 year olds) 80.0% 69.5% 69.1% 70.0% 62.1% 60.0% 46.2% 50.0% 40.8% 40.0% 26.2% 30.0% 20.0% 10.0% 0.0% Singapore Israel OECD 55-64 years 65-69 years Source: OECD Data 2016, Singapore data from Department of Statistics, and Labour Force Survey 2017 10 Engaging Minds, Exchanging Ideas

But older workers tend to be in lower skilled occupations Composition of Singapore's Workforce by Age Range and Occupation 40% 35% 30% 25% 20% 15% 10% 5% 0% Managers Working Professionals Associate Clerical Support Service & Sales Craftsmen & Plant & Machine Cleaners, Others & Proprietors Professionals Workers Workers Related Trades Operators & Labourers Administrators & Technicians Workers Assemblers & Related Workers 25-54 55-64 65 & Over Source: Ministry of Manpower, Labour Force in Singapore 2017 11 Engaging Minds, Exchanging Ideas

Flexible work practices: preferences vs reality Share of employed 55-64 year olds in part-time employment, % 47.4 50 40 31.3 30 24.2 22.2 22.3 20.8 20 16.6 15.7 11.7 10 0 Denmark Netherlands Sweden UK USA Japan S Korea Singapore Israel Source: OECD Data 2016, Singapore data from Department of Statistics, and Labour Force Survey 2017 12 Engaging Minds, Exchanging Ideas

Flexible work practices: preferences vs reality % employees still working in a traditional manner (all ages) % employees who would prefer to work from home or other location, but in their job do not have the possibility to do so 100% 80% 74% 81% 76% 66% 80% 70% 64% 61% 61% 68% 60% 68% 57% 65% 60% 52% 58% 48% 55% 60% 50% 51% 47% 40% 40% 30% 20% 20% 10% 0% 0% Denmark Netherlands New Zealand Sweden UK USA Japan Global Singapore Denmark Netherlands New Zealand Sweden UK USA Japan Global Singapore Source: Randstad Workmonitor Global Report 1Q2018 13 Engaging Minds, Exchanging Ideas

Older Worker Training Participation Rates Training participation rates of 55-64 year old workers 70.0% 59.7% 60.0% 53.9% 50.3% 50.0% 44.7% 41.9% 40.0% 33.7% 31.2% 30.6% 30.0% 20.0% 10.0% 0.0% Denmark Sweden UK Israel USA Japan Korea Singapore Source: OECD statistics, 2016, Singapore data from Ministry of Manpower, 2017 Note: Singapore data for 50-64 year olds 14 Engaging Minds, Exchanging Ideas

How shall we sustain ourselves? Income Security in Old-Age Promoting Employability • Mandatory Savings for • Retirement and Re- Retirement Income and employment legislation Medical Expenses • Re-skilling and Re- • Social Insurance Schemes: training Annuities, Health and • Job Re-design and Disability Flexible Work • Monetisation of Housing Arrangements Equity 15 Engaging Minds, Exchanging Ideas

More flexibility for re-employment Singapore’s retirement and re -employment age thresholds since the 1950s 55 62 65 67 72 ? 16 Engaging Minds, Exchanging Ideas

Employability: Skills Upgrading • SkillsFuture Scheme – Raising the resilience of the workforce through a general training fund • Adapt & Grow Scheme – Smoothening the transition of workers into new jobs and industries • Professional Conversion Programme – Helping professionals prepare for new jobs in new industries 17 Engaging Minds, Exchanging Ideas

Retaining and hiring older workers • Special Employment Credit – Employers hiring workers above the age of 55 and earning up to S$4k receive a wage- offset subsidy • WorkPro Grants – Grants to facilitate job redesign, flexible work arrangements and adopt best age- management practices 18 Engaging Minds, Exchanging Ideas

Principles of Singapore’s social support system Self-reliance + Many Helping Hands Government support Community assistance Family as first line of social support Self-reliance and Individual responsibility 19 Engaging Minds, Exchanging Ideas

Pillars of Old-Age Social Security Workfare Income Healthcare Assurance Home Ownership Supplement Income Supplement for bottom 20-30% of elderly 20 Engaging Minds, Exchanging Ideas

Singapore’s savings institution The Central Provident Fund (CPF) • Underpins how Singaporeans finance: – Home ownership – Medical bills and healthcare – Retirement expenditure 21 Engaging Minds, Exchanging Ideas

The Central Provident Fund system Income tax- advantaged Govt pays interest on CPF balances 22 Engaging Minds, Exchanging Ideas

Savings accumulation and decumulation CPF Account Balances (S$M) CPF Retirement Withdrawals (S$M) S$391 10,000 500,000 S$8.6 billion billion 8,000 400,000 300,000 6,000 S$3.4 billion S$126 200,000 4,000 billion 100,000 2,000 0 0 2006 2008 2010 2012 2014 2016 2018 2006 2008 2010 2012 2014 2016 2018 Ordinary Special Account MediSave Account Retirement Account Source: CPF Board statistics 23 Engaging Minds, Exchanging Ideas

Social Risk Pooling: Retirement, Health and Disability Universal Severe Universal Medical Disability Insurance Retirement Insurance Cover Cover (from 2020) income (annuities) 24 Engaging Minds, Exchanging Ideas

Social Risk Pooling: Retirement, Health and Disability Purchased from Premiums paid from Premiums paid from own retirement own MediSave account own MediSave account savings (CPF) 25 Engaging Minds, Exchanging Ideas

Picture source: second beginnings, Lien Foundation JDC-Eshel 50 th Anniversary Conference How Well Can We Age-in-Place? 26 Engaging Minds, Exchanging Ideas

Preferred Place of Dying Where the would want to be cared Final place of death for if they were dying Home 70% 77% Hospital 10% 12% Hospice 8% 7% Nursing Home 2% 2% Others 1% 2% No preference 9% Source: Lien Foundation Survey on Death Attitudes, 2014 27 Engaging Minds, Exchanging Ideas

Actual Place of Dying Other Locations, 2% • Less than a quarter of Singapore residents die at home Licensed Sick At Home, 24% Receiving Houses, 4% Public Sector Public and • 69% pass on in Hospitals, 60% Charitable Institutions, 5% hospitals and Nursing Homes and nursing homes Private Sector Clinics, 2% Hospitals, 3% Source: Singapore Demographic Bulletins 2018 28 Engaging Minds, Exchanging Ideas