Ageing Population
Growing ageing pop. + fewer number of working class citizens → increase demand on govt funding → for healthcare + social services→ to meet needs of larger ageing population
Life expectancy of 85 years → Sporeans → living longer 2010-2019 → govt → tripled healthcare expenditure → to 11.3 billion → meet growing needs of seniors → ensure → every Singaporean → has access to affordable and quality healthcare
Increasingly heavy cost of supporting ageing pop. → affect working pop.
- fewer working adults supporting more older people → cost each working adult needs to shoulder is higher
Fewer working adults → affect vibrancy of Singapore’s economy
- lower productivity → may lead to decreased economic output
- result in slower economic growth → for country If this happens → Singapore → not be able to sustain its resources → to care for elderly and people in need
Increase in Taxation
increase in GST
- higher govt revenue → help to meet needs of pop. → particularly in healthcare spending
Singapore → higher income earners → pay proportionally higher tax → highest personal income tax rate at 22% → 2021
SG’s competitive tax rates → attractive to high earners + entrepreneurs → who want to live + do business in Singapore.
- if tax rates keep increasing → may deter foreigners + tourists → from residing in / coming to SG.
Limitations in Upskilling and Training
Feedback conducted by REACH → many respondents → aged 60 and above → not sure if attending courses would be sufficient to increase their employment chances
- also shared → mindset shift → in employers → would also be needed → so that older workers → are valued, accepted, accommodated
2030 → retirement age set to 65 and re-employment age at 70 → mature workers → need more support to continue working for longer
- Without employment support for mature workers → would be hard → for employers to retain and and hire them
- May not be able to advance in their jobs → earning wages that may not be enough to support their needs