Giving more flexibility and individualizing the minimum sum to suit the needs of the retiree is a good idea. One area that we can also look at is to further streamline the need to keep the amount in the Medisave account for those who already are fully insured with hospitalization insurance plans that do not require any co-payment. A minimum amount could be kept aside to ensure enough is available to service the insurance premiums. Of course there is always the danger of rising premiums over time and future difficulties in servicing rising premiums. At the end of the day, its a balance between how much we want to keep in the account versus how much risks we are willing to bear, not just as an individual, but as a country. Those who do fall through the cracks will eventually need to be supported by the rest of society at large. Through my years in clinical practice, one sad truth remains: it is often those who are financially vulnerable who would benefit most from having insurance coverage for catastrophic healthcare expenditures; unfortunately these are also the group who do not buy insurance because they cannot afford the premiums in their hand-to-mouth existence. One good thing to be implemented next year is the introduction of compulsory Medishield Life that will see all Singaporeans covered medically, with the government supporting the premium of those in the lower income group. But for now, as we discuss the issue of allowing flexibility in setting the CPF Minimum Sum, let us take a prudent and calibrated approach to ensure a secure retirement for all.
Posted on: Sun, 14 Dec 2014 14:08:42 +0000
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