My dad is 62. Not working due to health, minimal insurance. No OA, SA 1k, MA 10k, RA 3k. How else can I help for his retirement? Pls advise.? - Seedly
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Anonymous

Asked 3w ago

My dad is 62. Not working due to health, minimal insurance. No OA, SA 1k, MA 10k, RA 3k. How else can I help for his retirement? Pls advise.?

My parents have no plan for this. Now the situation is that my dad needs to see doctor occasionally, MA can help us abit but seems like there is limit to the usage. His CPF is quite emptied, what will happen to his CPF thereafter and is there anything I can help for his retirement? He also have no insurance, since he did not get it when he was healthy, so unsure how we can help with this too. Any advice?

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Hi Anon,

I seconded Takingstock's opinion to fully utilise govt's cpf matched retirement savings scheme. Your parents, or at the very least your dad, should be able to qualify for it. Govt will match dollar-for-dollar up to $600 per annual for those who are eligible. It is free money from the govt, with guaranteed 100% of up to $600/annual, even before we considered the interest generated from his SA/RA. If you are unsure if your parents qualify, CPF's FAQ stated that eligible members will be notified by the end of first quarter, so you can wait till there's confirmation before acting on it. Personally, I feel that this is a must have if you are able to afford it for your parents/dad, if they qualify for it.

Source:

https://www.cpf.gov.sg/Members/Schemes/schemes/retirement/matched-retirement-savings-scheme

With minimal insurance when he has existing health issues, this might be tricky. I would recommend for you to speak to a Financial Advisor who genuinely helps instead of trying to achieve his/her sales target. This might put a bit of strain on your finances if you are footing the premiums, but it will prevent your account from breaking entirely should something happens.

Personally, I worry about my parents' retirement plans too, coz my family isn't well-off, and my parents are unwilling to talk about money (typical traditional Asian family) for me to understand where exactly do they stand. In a crude way of saying, I think I will have a significant role in my parents' retirement plan, so I'm watching my expenses very tightly in order to be able to channel more to them every month.

That being said, you do you, and work towards your objectives. It doesn't matter if you take a long time to reach your objectives, so long as you are moving towards it. All the best and jiayou.​​​

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Hi, not sure the exact condition of your Parents. But do consider the workfare scheme. https://www.workfare.gov.sg/Pages/WIS.aspx

  1. It could be as simple as doing some kind of freelance work like babysitting etc under self-employed scheme. As long as someone (you or themselves) contribute a minimum sum to their medisave account, they get further Govt top-ups.

  2. Depending on your own situation, you can also consider topping up their CPF accounts if you fall under the higher tax bracket (15% above).

  3. Can also review if they have supplementary health insurance beyond Medishield Life.

Glad to discuss/share further over call, zoom or in-person. Thanks to Frankie, so happens I am an Independent Financial Adviser.

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Please look up the cpf matched retirement savings scheme, which will be implemented in 2021. Your Dad looks like he will qualify under the scheme. The government will match every dollar top-up to the recipient's special account up to 600 per year.

only applies if the recipient has less than BRS, and some income / housing criteria

Next on the insurance... Look to enrol your parents in any form of hospitalization / medical insurance. This is the most crucial, and you may encounter some exemptions from pre-existing conditions.... But any form of protection is better than none. For the funding, your family can discuss to pay for most of the policy schemes from the children medisave.

These are the two best low hanging fruits (lowest cost, better outcomes). Just focus on it, and you can continue on the matched retirement savings scheme until your parents turn 70. You can also look at tax savings that you will get to help fund the cash portion of those medical insurance premiums.

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It could be difficult to create de novo a sufficient large back up for him.

Maybe you and your siblings would like to accumulate slowly but continously some funds and have it all times available in case of need in a separated account with decent money market interest. It is probably not a good option to invest into stocks etc, because that works only for very long intervalls without taking it suddenly out. Health insurance for him is also a very important topic, maybe you and your siblings could found that monthly together.

I feel you and your father/family need an independent finance advisor.

But beware of any bank/insurance company investing plans, like whole life or insurance coupled to investing returns. for them the company's profit comes very first, not the customer.

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