What will be the CareShield Life premiums when a 30-year-old today reaches 67 years old? Is the increase fixed at 2% a year?

For those born in 1980 or later, starting premiums vary by joining age and gender. Premiums are designed to increase regularly to support the regular increase in payouts. The schedule of premium increases is not fixed, and will be regularly reviewed by an independent council to ensure the sustainability of the scheme.

As an illustration, for a 30-year-old who joins the CareShield Life scheme upon scheme launch, his premiums would increase from $17/month to $36/month when he reaches 67 years old, assuming a non-guaranteed 2% premium increase per annum. His payouts would have correspondingly increased from $600/month at scheme launch to around $1,200/month. Actual future premiums and payouts will vary depending on the adjustment each year.

However, to provide greater assurance to Singaporeans, for the first five years of scheme implementation, payouts and premiums will both increase by 2% per year. An independent council will regularly review these trends thereafter and advise the Government on premium and payout adjustments in accordance with an actuarially sound adjustment framework.