This post was originally published as a press release on 19 February 2020.

19 February 2020 – Gender-equality group AWARE applauded the government’s endeavour to present a Budget that balances today’s most urgent needs, resulting from the disruption caused by the COVID-19 outbreak, while dealing with critical long-term issues.

In particular, AWARE was heartened to see the measures in the Budget to provide greater reassurance and support for seniors and low-income households. These are steps in the right direction, which the group hopes will be expanded on when the virus clears. AWARE seeks more clarity on these longer-term schemes to better determine whether they can sufficiently alleviate the future burdens of Singaporeans in need.

The announcement that the organisation most welcomed on Tuesday was the Matched Retirement Savings Scheme from 2021 to 2025. Under this scheme, the government will match CPF Retirement Account top-ups for Singaporeans aged 55-70 who have not met the Basic Retirement Sum (BRS). Deputy Prime Minister Heng Swee Keat called this “a way of encouraging and augmenting family support for our seniors with fewer means in retirement”.

Historically, women are more likely to not meet the BRS, due to interconnected factors—such as the gender pay gap and family caregiving responsibilities—that hinder their professional advancement. Matched savings would go some way to level these obstacles on the road to women’s retirement adequacy.

“As women on average live longer than men, initiatives that centre on elderly assistance, like this matched savings scheme, end up benefiting women more than men,” noted Ms Shailey Hingorani, AWARE’s head of Research and Advocacy. “It’s exciting to see new action in this arena.”

On the other hand, more clarity is needed about the efficacy of this measure.

“It would be useful to know how the scheme’s annual cap figure of $600 was calculated,” said Ms Hingorani. “Why not top up eligible individuals’ accounts to meet the BRS? And what happens after the age of 70? As this scheme appears to be a pilot, we would like a better idea of how the government would define its success.”

She pointed out that in the example given during DPM Heng’s speech—of retired 65-year-olds Mr and Mrs Tan, who would together receive around $1,400 monthly, up from $570, with the new schemes—the couple’s payouts would still not come close to the $2,351 that researchers last year calculated as necessary to sustain a basic standard of living.

In speaking of the matched savings scheme, DPM Heng also mentioned that 435,000 people would be eligible for matched savings—a number that seems large relative to Singapore’s population. Ms Hingorani noted that a gender breakdown, as well as a detailed breakdown of active and inactive members, within this figure would be helpful.

“The 435,000 figure is still quite opaque, as we need more data on Singaporeans between 55 and 70,” she added. “Without fuller details about the profile of people without BRS, the announced measures may not be reassuring enough, especially for those elderly without families or whose families cannot afford to support them financially.”

AWARE also commended the permanent enhancements to Silver Support for the retirement incomes of the bottom 20% of Singaporeans 65 and above. With payouts raised from $750 to $900 per quarter, and eligibility criteria broadened, the improvements reflect what AWARE had recommended in its 2017 and 2018 Budget submissions. Another plus: Eligible seniors do not have to proactively apply for Silver Support, which eliminates logistical barriers for recipients.

Other measures that seemed promising included the announced Senior Workers Support Package, a four-pronged strategy to boost senior employment.

Overall, AWARE had hoped that the Budget announcement would give explicit considerations to parts of Singapore’s population that, research increasingly shows, face unique financial challenges: women and family caregivers. This lack was keenly felt in the wake of January’s national report on the gender wage gap, as well as AWARE’s own recent report on eldercare’s negative impact on women’s finances (with respondents losing out on an average of $7,705 in self and employer CPF contributions due to caregiving). Some recommendations put forth by various proponents—such as making CareShield Life gender-neutral—went unaddressed.

“With the disruption of COVID-19, strong assistance from the government is timely and prudent,” said Ms Hingorani. “The sudden crisis shifted many priorities, spurring a number of one-off grants and top-ups. That said, when the virus clears, we would like to see the government make bigger and bolder moves with regards to Singapore’s ageing population, instead of tweaks to our existing, straining, structures. When this upheaval subsides, our gaze should be trained on the future, including the generation making real sacrifices to care for today’s old folks.”

AWARE’s 10th annual Budget recommendations were submitted on 10 January 2020.