Singapore doubles CareShield Life payout growth rate to 4% yearly

From 2030, monthly payouts for claimants will be US$628 (S$806).

The Singapore government has accepted the CareShield Life Council’s 2025 recommendations, doubling the scheme’s annual payout growth from 2% to 4%.

From 2030, monthly payouts for claimants will be US$628 (S$806), up from US$570 (S$731) under the old formula.

To offset higher premiums, the government will provide US$444.6m (S$570m) in support over five years, including US$343.2m (S$440m) in transitional aid and more than US$101.4m (S$130m) in means-tested subsidies.

Annual premium increases from 2026 to 2030 are expected to average US$29.6 (S$38), capped at US$58.5 (S$75).

The enhancements take effect in January 2026. Premiums remain payable via MediSave, and no one will lose coverage for non-payment.

Claim criteria, or severe disability defined as the inability to perform at least three of six daily activities, remain unchanged.

Enrollment for those born in 1979 or earlier will revert to medical underwriting in 2026, with only individuals without pre-existing disabilities eligible.

By end-2024, CareShield Life had collected US$2.18b (S$2.8b) in premiums, with US$20.3m (S$26m) paid out to 1,821 claimants.

The scheme now covers about 1.93 million citizens and permanent residents aged 30 and above.

(US$1.00 = S$1.28)