Budget 2025: More help for seniors, including those living in private property
Published on
21 Feb 2025
Published by
The Straits Times
SINGAPORE - Seniors will get more help to outfit their homes with age-friendly features, pay for their medical needs and receive higher subsidies should they require long-term care.
Prime Minister Lawrence Wong announced on Feb 18 that the Enhancement for Active Seniors (Ease) programme, which till now was limited to HDB dwellers, will be extended to seniors living in private property – for three years, up to 2028.
Under the scheme, the Government subsidises a range of fittings to make homes safe places for seniors aged 65 years and older. They include grab bars, wall-mounted foldable shower seats and slip-resistant treatment to existing flooring.
The amount HDB residents pay depends on the house type. MND will release more information on the amount private property owners will have to pay later.
“Our priority is to empower our seniors to stay active and healthy,” said PM Wong, who is also Finance Minister. “Our plans include creating a more conducive living environment for our seniors.”
As older people tend to spend more on healthcare needs, eligible lower-income seniors aged 55 to 70 who make voluntary contributions to MediSave will have their contributions matched dollar-for-dollar, capped at $1,000 a year. This scheme will be in place for five years.
To qualify, they should have an average monthly income of $4,000 or less, own no more than one property with an annual value of $21,000 or less, and have a MediSave balance of less than half the Basic Healthcare Sum, which stands at $75,500 in 2025.
This scheme complements the existing Matched Retirement Savings Scheme, where the Government matches the cash top-ups made to Retirement Accounts with less than $106,500.
In 2025, the matching grant cap was raised from $600 to $2,000, subject to a lifetime cap of $20,000. Top-ups that get the matching grant are not eligible for tax relief. The upper age limit has also been removed, so now the scheme is open to people aged 55 years and older.
“The contributions from both the Government and their loved ones will better support their retirement and healthcare needs, and give them greater assurance as they age,” said PM Wong.
There will also be more help for frail and ill seniors who require long-term care, with government subsidies increasing by up to 15 percentage points for those born after 1969. The subsidy now ranges from 20 per cent to 80 per cent for eligible citizens and 10 per cent to 55 per cent for eligible permanent residents.
For citizens born in 1969 or earlier, subsidies will increase by up to 20 percentage points for residential long-term care services and by up to 25 percentage points for home and community services. For citizens born after 1969, subsidies will increase by up to 15 percentage points for residential long-term care services and by up to 10 percentage points for home and community services.
The maximum qualifying per capita household income will go up from $3,600 to $4,800.
The Government will also be giving higher cash grants to offset daily care costs for people who are supporting seniors at home. This goes up from $400 to $600 a month. The qualifying per capita household income will also be raised to $4,800.
At least 80,000 seniors will benefit from the enhanced long-term care subsidies and grants, which will cost the Government around $300 million in financial year 2026, and more in future years, as the population continues to age.
PM Wong said: “With a rapidly ageing population, we have to work hard to manage the increases in long-term care costs, and ensure a good mix of funding support between individual co-payment, government subsidies and insurance.”
The Health Ministry will be expanding on this during the upcoming debate on the ministry’s budget.
Correction note: The story has been edited for clarity.
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Source: The Straits Times © SPH Media Limited. Reproduced with permission.
Photo: The Straits Times
Written By: Salma Khalik
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