29 Aug 2025
SOURCE: CPF Board
As you navigate life’s moments — balancing work and family responsibilities — it's important not to wait to plan for your long-term care. Its costs can be unpredictable and add up quickly. Understanding and preparing for the potential need for long-term care is essential to protect your financial wellbeing and maintain your quality of life. Here are 3 considerations:
With Singaporeans living longer, the likelihood of requiring long-term care increases significantly. One in two Singapore Citizens are expected to develop severe disability at some point in their lifetime and may need long-term care due to a sudden disabling event (e.g. stroke) or worsening of chronic conditions and diseases (e.g. diabetes), or progression of age-related illnesses (e.g. dementia).
Healthcare and long-term care costs are rising globally. More are starting to prefer seeking care at home or in community settings. While service subsidies have increased substantially to keep up with the rising costs, informal care costs are better defrayed through cash payouts from insurance and grants.
Long-term care costs can become a heavy financial strain on loved ones. Planning helps you be more financially ready, allowing you to maintain your independence and reduce potential strain on your family.
Even if we are currently leading healthy and active lives, some of us may still require support, at some point in our lives, to perform everyday tasks that we are able to do independently today. This can happen to anyone, regardless of age.
Today, Singaporeans who need long-term care have access to several financing options, including insurance.
CareShield Life is Singapore’s national long-term care insurance scheme designed to provide basic financial support should you develop severe disability. It offers lifelong monthly cash payouts if you are unable to perform at least three out of six Activities of Daily Living (ADLs) — such as feeding, dressing, washing, toileting, transferring, or moving around independently.
All Singapore Citizens and Permanent Residents born in 1980 or later have been automatically enrolled when they turn 30. Enrolment is optional* for those born earlier.
If you were born between 1970 and 1979, were insured under ElderShield 400, and have not developed severe disability, you have been automatically enrolled from 1 December 2021 unless you opted out.
*Except foreigners who become Singapore Citizens or Permanent Residents from 1st Oct 2020 onwards and are born in 1979 or earlier. Participation is mandatory as long as they have not developed severe disability.
Premiums can be fully paid using MediSave, with the Government providing subsidies and support to keep premiums affordable. No one will lose coverage if they are unable to pay.
Payouts start at $662/month in 2025 and increase annually until age 67 or when a successful claim is made.
Since its launch in 2020, around 1.9 million policyholders have enrolled in CareShield Life, including nearly 250,000 Singaporeans who upgraded from the ElderShield scheme.
If you were not automatically enrolled, you can choose to join CareShield Life by applying with your Singpass and enjoy a 60-day free-look period.
To ensure that the CareShield Life continues to support Singaporeans in meeting their basic long-term care needs if they develop severe disability, the CareShield Life Council has completed the first comprehensive review of the scheme, which was launched in 2020.
The scheme changes will be implemented progressively from January 2026.
Here’s what you need to know:
- Monthly payouts for CareShield Life will grow from 2% to 4% for the next five years from 2026 to 2030 to better support you in managing the increase in healthcare expenses.
- Payouts will increase annually until you turn 67 or whenever a successful claim is made, whichever is earlier.
- To sustain the higher payouts, premiums will need to increase.
- To help Singaporeans cope with the increase in premiums, the Government will provide over $570 million more in premium support, on top of the existing premium support today. This additional support will offset more than a third of the premium increase over the next five years. All premiums will also remain fully payable by MediSave.
Find out more about CareShield Life 2025 Review.
These changes will allow CareShield Life to continue playing an effective role in supporting Singaporeans with long-term care affordability and rising long-term care costs.
Information in this article is accurate as at the date of publication.
