Feeling left out in Government subsidies – Medishield Life Premium

Two-thirds of Singaporeans will get permanent government subsidies on paying Medishield Life premium. My household of three belongs to the category of one-thirds who gets no more subsidies from Year 5 onwards when the transitional subsidies end.

We are in the so called “High Income” household on account that we stayed in a property with annual value (AV) of more than $21,000, even when our monthly household per capita income is less than $2,600. The annual value (AV) of our residence becomes critical in deciding our entitlement to subsidies. This group so called “High Income” is expected to take care of themselves and is considered to have the means to do so.

How did we get into this situation?

My wife and I worked very hard during our productive years to reach our aspirations of living in a private property, paying our income tax dutifully and paying higher property taxes. We chose early retirement to pursue happiness and to reduce medical stress. My daughter stays with us and chooses to have a small business that does not pay much as one can get from external employers. This is her aspiration to do something she can enjoy. My wife and I support her in this venture. As a result, we do not have fat monthly pay-checks which also means that we cannot capitalise on the advantage of additional 1% increase in Medisave to help to pay the Medishield Life premium.

My daughter follows us since she stays in the same household when comes to computing subsidies. This situation will be different if she stays on her own in a public housing. So she is not entitled to permanent subsidies even when her monthly income is low.

From the above and to get subsidies from government,

1. one is better off to continue to work till official retirement age
2. one stays in public housing

I do not feel at all inclusive with this government policy. This runs counter to government’s stand of all inclusive government policies. Our aspirations got us where we are today (ie not able to get permanent subsidies for Medishield Life premium and not able to enroll in CHAS Community Health Assist Scheme). We even talked about moving to public housing when our financial resources cannot sustain us in our retirement years.

Copyright © 2014, limkimtong for Living Investment

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

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