SINGAPORE: Major health shocks, like chronic illnesses or a stroke, have a longer lasting impact on the financial situation of an elderly person in Singapore compared to minor health shocks like hypertension and diabetes, according to an ongoing study by the Centre for Research on the Economics of Ageing (CREA).
In its study of more than 10,000 individuals aged 50 to 70, researchers found that 6 per cent of respondents were diagnosed with a new chronic condition over a 14-month period.
Through monthly surveys, the researchers were able to observe that health expenditure for major health shocks increased significantly in the month of when the health incident happens and persisted in the following months, according to the study.
Professor Rhema Vaithianathan, senior research fellow at CREA, told Channel NewsAsia that for households that receive a new major health shock, they were spending S$235 on healthcare before their diagnosis. In the month of the shock, their spending goes up to S$861, she said.
“These are, of course, generally unwell people, and that’s why they get these diagnoses. So even their baseline spending is higher than the average household,” Prof Rhema said, adding that the average household spends S$153 a month on healthcare.
This means that as Singaporeans age, they are at considerable risk of major health shocks and these have long-term financial implications, explained Professor Rhema Vaithianathan, senior research fellow at CREA.
Since August 2015, researchers from CREA have been looking at impacts of ageing on financial situations to determine how prepared Singaporeans are for retirement. Each month, participants are required to fill up online survey questions detailing their employment, finances, health, household structure, well-being and retirement plan.
Professor Bryce Hool, director of CREA, said the study will provide a window into the circumstances of Singaporeans approaching or beyond retirement.
“It’s really important – particularly when the focus is on how people are ageing and what they are experiencing – that you don’t just do a snapshot, because so many aspects of ageing are really things that play out over time,” he said.
The study is funded by a S$10 million grant from the Ministry of Education and is expected to be completed by 2019.
At CREA’s inaugural conference, Senior Minister of State for Health Dr Amy Khor, said a multidisciplinary approach to the study of ageing will help to create more innovative solutions and policies.
“We want to plan forward to meet the needs of seniors of tomorrow. Research is key to helping us transform the experience of ageing in Singapore,” she said.
