SINGAPORE — Singaporeans in their 50s and early 60s can expect targeted support to help them cope with the burden of rising living costs and anxiety over retirement, Prime Minister Lee Hsien Loong announced on Sunday (Aug 20).

In the Mandarin portion of his National Day Rally speech, Mr Lee said this group has been “particularly concerned” about the cost of living as they are approaching retirement.

At the same time, they form the sandwiched generation who support their ageing parents and their own family.

This generation also faces unique problems when it comes to building up their retirement nest egg.

“This is because your income when you were younger was not as high as younger Singaporeans today,” said Mr Lee, adding that this group had a shorter runway to benefit from Singapore’s economic growth, compared to the younger generation.

While the various subsidies provided by the Government can help them deal with the challenge of daily living costs, this group may still be worried about retirement adequacy.

“I understand your concerns. The Government will help alleviate your financial burden and provide targeted assistance so you can be less anxious about your retirement,” said the Prime Minister, adding that more details would be announced later in his English speech.

Mr Lee acknowledged the challenge of rising inflation as the world emerged from the Covid-19 pandemic into an increasingly “troubled” world marked by rising geopolitical tensions and an uncertain global economy.

The Government has since given out various subsidies to reduce the burden of rising costs on Singaporeans. Like in the past year, people can expect subsidies, from cash payouts, MediSave top-ups to Community Development Council (CDC) vouchers, almost every month, he said.

“We have kept our promise to take care of Singaporeans.”

The Government also rolled out the Assurance Package to alleviate the pressure of the hike in the Goods and Services Tax (GST) on Singaporeans, especially those from the middle and lower income.

The GST went up by 1 percentage point to 8 per cent this year and will rise to 9 per cent in 2024.

The Assurance Package was first announced at Budget 2020 to help offset additional GST expenses. It was given a S$3 billion boost in this year’s Budget, thanks to a budget surplus.

The additional support included a one-time “cost-of-living special payment” and another S$300 in CDC vouchers to allay inflation concerns.

“The extra CDC Vouchers were very popular,” said Mr Lee. “I am glad that these measures have been effective and Singaporeans have benefitted from them.”

With the GST set to be raised by another percentage point in January next year, the Government will continue with the Assurance Package as planned.

“I am confident it will be effective in buffering the impact of the adjustment to 9 per cent,” he said.

On whether the support package could be further enhanced, Mr Lee said: “You asked me, so I asked Finance Minister Lawrence Wong. He said he will study it carefully. Let’s wait and of course, we hope for good news.”

That said, the Prime Minister noted that the Government “cannot give out subsidies infinitely”.

“The long-term solution is to make ourselves more productive, transform our businesses, and grow our economy. Then our real incomes can rise and we can all be better off.” CNA