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As Singaporeans navigate rising living costs and an ageing population, the Singapore Budget 2025 introduces targeted measures to alleviate the financial burden on working adults caring for elderly parents. From healthcare subsidies to retirement savings boosts, here’s what you need to know to secure support for your ageing loved ones.
1. Enhanced Home Caregiving Grant (HCG): Up to $600/month
What’s New: The HCG, which provides cash payouts to offset caregiving expenses, will increase from 400 to 600/month starting April 2026.
Eligibility:
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Care recipients must be Singapore Citizens (SCs) or Permanent Residents (PRs).
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Household monthly Per Capita Income (PCI) ≤ 4,800 (raised from 4,800 (raised from 3,600).
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Care recipients must require assistance with ≥3 Activities of Daily Living (e.g., feeding, mobility).
Why It Matters: This helps working adults manage out-of-pocket costs for home care services, medical supplies, or hiring domestic helpers.
2. Matched MediSave Scheme (MMSS): Boost Retirement Healthcare Funds
What’s New: From January 2026, the government will match 1−for− voluntary cash top-ups to MediSave Accounts (MA) of eligible seniors aged 55–70, capped at $1,000/year.
Eligibility:
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MA balance < 50% of Basic Healthcare Sum.
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Annual Value (AV) of residence ≤ $21,000.
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Monthly income ≤ $4,000, and owns ≤1 property.
Why It Matters: Families can top up their parents’ MA to reduce future healthcare expenses, with immediate government matching.
3. Higher Long-Term Care (LTC) Subsidies
What’s New: Subsidies for residential and home/community care services (e.g., nursing homes, home therapy) will increase by up to 15%, with expanded income eligibility (PCI ≤ $4,800). Older seniors (born 1969 or earlier) receive additional subsidies.
Eligibility:
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SCs/PRs requiring chronic illness/disability care.
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Subsidy tiers based on PCI and property ownership.
Why It Matters: Reduces care costs for families relying on external care services.
4. Extended Senior Employment Credit (SEC): Support Working Elderly Parents
What’s New: Employers hiring seniors aged 60+ earning ≤$4,000/month receive wage offsets (up to 7% for those aged 69+). The SEC is extended to end-2026.
Eligibility:
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Parents must be SCs aged 60+.
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Employers automatically qualify if criteria are met.
Why It Matters: Encourages employers to retain or hire elderly parents, supplementing household income.
5. $800 SG60 Vouchers for Seniors Aged 60+
What’s New: All SCs aged 60+ in 2025 will receive S$800 SG60 vouchers 600 for younger adults. These can be spent at hawkers, supermarkets, and clinics.
Eligibility:
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SCs born in 1965 or earlier.
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Vouchers expire on 31 December 2026.
Why It Matters: Eases daily expenses for elderly parents, reducing financial strain on families.
6. CPF Contribution Rate Hike for Senior Workers
What’s New: CPF rates for workers aged 55–65 will increase by 1.5 percentage points from January 2026, with employer offsets to ease business costs.
Why It Matters: Boosts retirement savings for elderly parents still in the workforce.
Eligibility Tips for Working Adults
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Check Income Thresholds: Many subsidies (e.g., HCG, LTC) hinge on PCI. Calculate using total household income ÷ members.
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Update Parent’s MediSave/CPF: Ensure their accounts are active for MMSS and retirement top-ups.
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Explore Employment Support: Employers hiring elderly parents may qualify for SEC wage offsets.
The Singapore Budget 2025 addresses critical pain points for working adults supporting elderly parents, from healthcare to employment stability. By leveraging these schemes, families can better manage caregiving costs and secure their parents’ financial well-being.
Stay tuned to Financial Coconut for more insights on how Budget 2025 impacts your parents.
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