Free medical insurance in our old age?

On 14 December 2013, I blogged about how we could possibly get free medical insurance in Singapore. 

I shared my own experience and how things have worked for me. 

The beauty about the method I shared is that it is risk free and, therefore, stress free.

You don't know what I am talking about? 

Then, you might want to read this first:
How to get free medical insurance in Singapore?






Of course, there is some concern with how the annual premium which we pay for our H&S (hospitalisation and surgical) insurance will increase as we grow older. 

This means that the cost of coverage will become more expensive over the years with annual cost exceeding $2,000 as we age into our 60s in some cases.

This is one reason why I am quite happy to have the government increase the limit for the Medisave Account (CPF-MA) which pays 4% per annum, risk free. 

Having more money in my CPF-MA means receiving more in interest payment.

Last year, I received $1,760.35 in interest payment for money in my CPF-MA. 

The year before that, I received $1,654.48. 

That is an increase of more than $100. 

However, withdrawal to pay for my H&S insurance remained at $665.00. 

So, I have some surplus.





If the MA ceiling is raised year after year, I should have more surplus in my MA year after year too. 

This means that funds in my MA earn more interest to pay for the higher insurance premium that is bound to come as I enter the next age bracket and the next and so on.

So, the argument that even this method will not ensure that we get "free" medical insurance in our golden years is weakened. 

In my 60s, I would probably have to pay more than $2,000 annually for my H&S insurance. 

Last year, I already received $1,760.35 in interest payment. 

With the MA's ceiling raised annually, could I see more than $2,000 in interest payment eventually? 

I cannot say for sure but, everything else remaining equal, I think so.





Of course, by having the maximum allowed in my MA now while I am younger, I will enjoy plenty of surplus as I receive the maximum in interest payment while paying relatively lesser for my H&S insurance. 

The surplus amounts to a few hundred dollars each year, in fact. 

It is like receiving more money now to pay for the higher cost of insurance in our old age.

If you worry about the high cost of health care in Singapore, you should get yourself covered with a good H&S insurance policy. 

If you worry about the cost of insurance escalating as you age, you might want to max out your MA, letting time and the government help you accumulate the funds to give you free medical insurance that so many say we do not have in Singapore.





Related post:
Enhanced Incomeshield (H&S) for my mom.

Free "e-book": Don't depend on wage increases for higher income (UPDATED in 2018).

I am sure you have read the news and it is sobering. 

Wages are increasing more slowly and actually if our wages did increase, we should count ourselves fortunate. 

Some people I know are not seeing any increase in wages.

One of the things we must never take for granted is that wages will always increase year after year. 

There will be years when we might not get any increase. 

There will be years when we might have to take a pay cut. 





What? You have never experienced a pay cut before? 

Lucky you.

What could be worse than not getting any wage increase? 

Getting a pay cut, of course. 

What could be worse than that? 

Retrenchment! 

What could make that worse? 

To see inflation marching on. 

That would make everything a double whammy.





What to do? Take on another job? 

I guess we would have to do that if we didn't have a choice and if we could get another job. 

There would be bills that still need to be paid, wouldn't there? 

There would be expenses that could not be avoided. 

It could get very depressing but human beings have the tendency to feel invincible when things are going swimmingly their way, never preparing for how things could go wrong.

Of course, if we had money stashed away, it could lessen the pain. 

This is why an emergency fund is important. 

Having said this, even emergency funds could get depleted. 

So, for double protection, we should own assets which consistently generate income. 

Indeed, this is something that should benefit all of us who want a secure financial future.

These are topics I have blogged about often enough.

So, here are a few chapters in another "e-book" which you might be interested in reading. 





Don't depend on wage increases for higher income:


Chapter One

People who depend on their monthly wages just to get by are wage slaves. 

Don't be a wage slave.

See: Freedom from wage slavery.





Chapter Two

We need to put aside a meaningful emergency fund. 

This is probably the most basic thing we must do to have a measure of financial security.

See: A meaningful emergency fund is important.





Chapter Three

In order to own income producing assets, we need to have money. How do we have money?

See: The first step to becoming richer.

Chapter Four

We always hear about how we should start investing to grow our wealth as soon as possible. 

Starting young would give us more time to grow our wealth.

See: Retiring a millionaire?






Chapter Five

Remember, however, that it is never too late to learn how to invest for income. 

The best time to start is always "now".

See: Retirement adequacy for late bloomers.





Chapter Six

It is also important to always have a war chest ready. 

In good times, I would never ever be 100% invested. Why?

See: Ready to come out on top from a recession?





Chapter Seven

As we embark on our journey towards greater financial security, try to involve everyone in the family. 

Mutual understanding and support will make the journey perhaps more enjoyable and, hopefully, easier.

See: Achieving financial freedom is a family affair.





If you are new to my blog, I hope that this "e-book" has inspired you. 

If you are a regular reader, you might want to share this with people you care about, especially people whom you want to journey towards financial freedom together with.