Long-term care in Singapore: the retirement cost families miss

Many Singaporeans are used to thinking about retirement as an income question.

• How much will I need each month?
• How much will CPF LIFE provide?
• How much should I save, invest or draw down?

Those questions matter. But they can also overlook the period when your everyday life begins to require more help. 

As we enter into the later stages of our retirement years (which some have dubbed the "care years"), we may need help with activities such as washing, walking, eating, taking medication, or even getting off the bed every morning. The reality is, unlike a hospital bill, the monetary costs for such support may recur for years.

The Great Eastern 2025 long-term care study, released in June 2026, shows why this deserves more attention. Conducted with NielsenIQ, it included an online survey of 1,000 Singapore residents aged 30 to 64 and interviews with caregivers who had between 2 and more than 10 years of experience.

• Awareness of long-term care risk rose from 29% in 2023 to 42% in 2025.
• Yet 59% of respondents still did not seriously consider their own likelihood of disability.

This shows that while more people recognise the issue, many still see it as something that are more likely happen to someone else, rather than themselves.

Retirement may need more than one budget

The MOH has estimated that 1 in 2 Singaporeans who are healthy at age 65 could become severely disabled at some point in their lifetime. Among those who become severely disabled, the median duration of disability is 4 years, while 3 in 10 could remain severely disabled for at least 10 years.

Your retirement as such is unlikely to follow one flat spending pattern.

• There may be active years, when independence, experiences and lifestyle remain the focus.
• These may be followed by slower years, when health, mobility and support at home become more important.
• Some people may then experience care years, when regular help from family members or professionals is needed.

These are not official life-stage categories, nor will everyone move through them in the same way. But they are a useful reminder that a retirement budget based only on today’s lifestyle may not cover tomorrow’s needs.

Long-term care is also not necessarily confined to old age.

• The latest Great Eastern claims data shows that 62% of GREAT CareShield claimants were under 50.
• The study also found that 49% of caregivers had already been providing care for at least 3 years, including 28% who had done so for 5 years or longer.

The financial risk therefore comes from both timing and duration. Care may begin earlier than expected and continue for longer than a short-term emergency fund was designed to cover.

Home care is preferred, but often underpriced

Great Eastern’s study found that 68% of respondents preferred professional care delivered at home rather than in an institution. Familiar surroundings can offer greater comfort, independence and dignity.

But receiving care at home does not mean receiving care at little cost.

A home-care arrangement may involve a trained domestic helper, rehabilitation, nursing visits, medical supplies, special food, equipment and changes to the home. There may also be transport and respite-care costs as needs evolve.

Publicly listed care-service prices provide further context. The Agency for Integrated Care states that nursing-home care starts from S$3,900 a month before subsidies. Home nursing starts from S$62 a visit, while medical escort and transport starts from S$40 for each round trip.

These figures describe different types and intensities of care, so they should not be treated as direct alternatives. What they show is that long-term care is rarely a single, predictable bill. The eventual cost depends on the person’s condition, care setting, available family support and eligibility for subsidies.

It is also the duration that turns a monthly expense into a retirement risk. At S$2,409 a month, 5 years of care would amount to more than S$144,000. At S$3,550 a month, the same period would exceed S$213,000, before allowing for inflation or changes in care needs.

Families can pay for care in more ways than one

The financial effect is not limited to bills paid to care providers.

• Among caregivers aged 30 to 64 in Great Eastern’s study, 66% remained in full-time employment while providing care.
• Compared with their employment status before becoming caregivers, 19% had left full-time work.
• The study also found that 68% of caregivers experienced emotional stress or burnout, while 61% reported financial strain from treatment or care costs.

This means a family may pay twice: once for the care itself, and again through reduced working hours, lost income or slower career progression.

A sound care plan should therefore consider more than who will fund the bills. Families should also discuss who can coordinate appointments, manage documents, arrange professional help and give the main caregiver time to rest.

While clear roles will not remove the difficulty of caregiving, they can reduce the confusion and conflict that often arise when decisions have to be made quickly.

CareShield Life is the foundation, not the full budget

CareShield Life provides monthly cash payouts for life when an insured person is assessed as unable to perform at least 3 of the 6 activities of daily living. These are washing, dressing, feeding, toileting, walking or moving around, and transferring between a bed and a chair or wheelchair.

Because the payouts are in cash, they can be used for the care arrangement that best fits the household. As an illustration, a person born in 1980 who makes a successful claim in 2026 would receive S$689 a month for as long as the severe disability continues. Actual payout amounts depend on factors including year of birth and when a successful claim is made.

Other schemes may add further support:

• The Home Caregiving Grant provides means-tested cash payouts of up to S$600 a month for eligible people with moderate to severe disabilities. It can be used for needs such as helper costs, home-care services and healthcare items.
• MediSave Care allows eligible Singapore Citizens and Permanent Residents aged 30 and above with severe disability to withdraw up to S$200 a month from their own or their spouse’s MediSave Account, depending on the account balance.
• CareShield Life and ElderShield Supplements can offer additional benefits, such as higher monthly payouts. Premiums can be paid in cash or with up to S$600 from MediSave per calendar year for each insured person.

These sources of support can reduce the burden, but they may not cover every expense. Eligibility also differs across schemes.

The more useful question is therefore not simply, “Do I have CareShield Life?”, but, "if care is needed, how much support could be available each month, and what gap would still have to be funded?"

That remaining amount may need to come from a CareShield Life Supplement, insurance benefits, retirement income, savings, investments or contributions from family members.

Build a care buffer before the decisions become urgent

No forecast can predict the exact condition, cost or duration of future care. Planning is still useful because it gives families more options when circumstances change.

A practical starting plan should cover three areas:

• Estimate the possible cost. Test what 3, 5 or 10 years of care could mean for the retirement plan instead of budgeting for only a short disruption.
• Map the funding sources. Review CareShield Life, any Supplement coverage, grants, MediSave, insurance, savings and reliable retirement income together.
• Agree on the family plan. Decide who would coordinate care, manage money and documents, and make decisions if the person receiving care loses mental capacity.

It is also worth reviewing whether a Lasting Power of Attorney has been made and whether key CPF, insurance and medical information can be located easily.

A financial representative can help you assess how long-term care protection fits alongside CPF LIFE, hospitalisation coverage, critical illness protection, savings and investments. The aim is not to prepare for every possible expense. It is to avoid depending on one scheme, one pool of savings or one exhausted caregiver.

Long-term care planning protects choice

Long-term care is uncomfortable to think about because it involves a possible loss of independence.

But planning for it is ultimately about preserving independence for as long as possible and protecting the choices that remain.

It can preserve the choice to receive care at home when appropriate. It can reduce the pressure on a spouse or adult child. It can help prevent care expenses from consuming assets meant to support the rest of retirement.

A retirement plan should not only answer whether there will be enough money to live on.

It should also answer whether the plan can still hold when living requires more help.

Frequently asked questions

What is long-term care?

Long-term care is ongoing personal, medical or practical support for someone who has difficulty living independently because of disability, illness, frailty or cognitive decline. It can be provided at home, through community services or in a residential care facility.

Is long-term care only needed in old age?

No. The likelihood generally increases with age, but disability and care needs can also result from injuries, strokes, chronic illnesses and progressive conditions. Great Eastern’s latest claims data found that 62% of GREAT CareShield claimants were under 50.

How much can long-term care cost in Singapore?

Costs vary considerably. Great Eastern’s study cited an expert projection of up to S$3,550 a month for home caregiving for a bedridden patient, while AIC states that nursing-home care starts from S$3,900 a month before subsidies. These figures cover different arrangements and should be treated as planning references rather than fixed prices.

Does CareShield Life pay for all long-term care costs?

CareShield Life provides lifelong monthly cash payouts when its severe-disability criteria are met. The payout can form an important foundation, but families may still face a gap depending on the type, intensity and duration of care required.