Singapore household wealth is mostly a flat and CPF: what does it mean for your parents?
If your parents own their flat and have CPF savings, they can look well set on paper. Singapore household wealth figures came out for the first time this year. About 90% of wealth in lower-wealth households sits in housing and CPF, and 80% to 85% in a middle one. You can't spend either in a hurry. So what happens if your mum or dad gets sick or needs care? Here's what the figures found, why more Shield plans and riders are being downgraded or dropped, and what you can check as a family.
What did the household wealth figures actually find?
About 90% of a lower-wealth household's wealth sits in its home and its CPF savings. If your family is in the middle, the share is around 80% to 85%.
The Ministry of Finance put out the data in a paper on 9 February 2026. It added household wealth to the income figures, so you get a fuller picture than income alone gives.
Real incomes have grown over the past decade. The catch is that you can't turn a flat or a CPF account into spending money fast.
Why does it matter where your parents' money sits?
It matters when a big cost shows up without warning. An illness or a sudden need for a caregiver can catch your family short. The costs run from the first medical bill to years of care and lost pay.
Life expectancy at birth in Singapore is now about 84 years, but roughly a decade of that is spent in poor health. If you reach 65, you can expect about 21.6 more years on average.
Money stress shows up in health too. People who worry about making ends meet are more likely to put off seeing a doctor, skip a follow-up or stop their medicine.
Most households here aren't poor, thanks to high home ownership and compulsory savings. Your family can still feel stretched when these three things pile up:
- Your parents' income falls faster than their spending, say after a switch to part-time work or an illness that stops work.
- Bills you can't skip, like healthcare, caregiving and utilities, take up more of the budget.
- There's little cash outside the flat and CPF, so you have few ways to cover a shock.
Real talk: why are Shield plan downgrades going up?
Premiums keep climbing, and more plans are being downgraded or dropped. In 2025 there were 128,200 downgrades and cancellations of Integrated Shield Plans, up from 99,000 in 2023.
These are the private plans that sit on top of MediShield Life. Riders, the add-ons to them, saw a bigger jump. Their downgrades and cancellations more than doubled over the same two years, to 181,800 in 2025.
Shield plan and rider downgrades and cancellations a year, 2023 to 2025
| Year | Shield plans | Riders |
|---|---|---|
| 2023 | 99.0k | 84.8k |
| 2024 | 105.9k | 103.4k |
| 2025 | 128.2k | 181.8k |
Do we know why people are cutting back? Not officially, since MOH doesn't track the reasons. Some may be cutting costs, and some may be resizing their cover to fit their needs.
Your premiums rise as you get older, for MediShield Life and private plans alike. Each age group pays for the claims it's expected to make. Older people get admitted more often and run up bigger bills.
For MediShield Life, the government pays a large part of seniors' premiums. If your parents are Pioneer or Merdeka Generation, they also get MediSave top-ups to keep basic cover affordable.
Giving up cover saves on premiums, but it can leave your parent paying more out of pocket if a big health bill comes. Our guide to how Integrated Shield Plans and riders compare explains what each layer pays.
| Year | Shield plans (thousands) | Riders (thousands) |
|---|---|---|
| 2023 | 99 | 84.8 |
| 2024 | 105.9 | 103.4 |
| 2025 | 128.2 | 181.8 |
What's changing for your parents' CPF in 2027?
Is your mum or dad still employed, and aged above 55 to 65? Their CPF contribution rates go up again on 1 January 2027, after a rise in 2026. Here's the total rate on wages over S$750 a month.
Employees above 55 to 60
Before: 34%. Now: 35.5%
The employer pays 16.5% and the employee 19%.
Employees above 60 to 65
Before: 25%. Now: 26%
The employer and the employee pay 13% each.
The extra money goes into their Retirement Account, up to the Full Retirement Sum. Once that's set aside, it goes to their Ordinary Account instead.
Earning more than S$500 and up to S$750 a month? Then they pay lower phased-in rates, and those rise in proportion. First- and second-year Singapore Permanent Residents on graduated rates see no change.
Older Singaporeans with lower CPF savings also get a one-off top-up of up to S$1,500. If your parent was born in 1976 or earlier, it's paid into their CPF in December 2026. The amount depends on their CPF savings and their home.
Long-term care subsidies have been expanded too. Our guide to the Budget 2026 CPF changes covers who gets the top-up.
- Above 55 to 60: 35.5% in total, up from 34%. The employer pays 16.5% and the employee 19%.
- Above 60 to 65: 26% in total, up from 25%. The employer and the employee pay 13% each.
- 55 and below, and above 65: no change.
So, what can your family sort out together?
Start with your parents' whole balance sheet, not just their payslip. You probably know your own monthly pay, but plenty of people have no clear idea of their net wealth.
Talking about ageing and money can feel taboo in a Singapore family. Having the talk early can help you avoid making care and money choices in a rush or under pressure. Here's what to cover:
- What your parents own and what they owe, with the flat and CPF on the list.
- What their CPF and MediSave balances would add up to at 65, 75 and 85.
- Whether a scheme matches small, regular top-ups to MediSave or retirement savings.
- Whether a smaller flat nearby, or the Lease Buyback Scheme, would free up some cash while keeping them close to you.
- How any cash from the flat would pay out steadily over the years instead of in one go.
- Who among you can give what kind of care, what money there is, and what your parents want.
Where can you see your parents' numbers?
Weighing their Shield plan as well? You can find MOH's comparisons of benefits and estimated lifetime premiums across the plans. MOH and CPF Board also launched the Health Insurance Planner in 2025, an online tool to help you decide on health cover.
To see where a balance stands, our guide to CPF savings by age group puts it next to others the same age. Our Financial Health Check calculator scores your own cash buffer and debts too.
This week, sit down with your parents and list what they own and owe, the flat and CPF included.
Frequently asked questions
How much of Singapore household wealth is in housing and CPF?
About 90% for lower-wealth households, and around 80% to 85% for a middle household. These come from the household wealth figures Singapore published for the first time in February 2026.
How many Integrated Shield Plans were downgraded or dropped in 2025?
There were 128,200 downgrades and cancellations of Integrated Shield Plans in 2025, up from 99,000 in 2023. For riders, the number more than doubled over the same period, to 181,800.
Does MOH know why people are giving up their Shield plans?
No. MOH doesn't track the reasons. People may cut back because the premiums have become hard to afford, or to resize their cover to fit their needs and circumstances.
What are the CPF contribution rates for employees aged 55 to 65 from 2027?
From 1 January 2027, on wages above S$750 a month, the total rate is 35.5% for employees above 55 to 60. For employees above 60 to 65, it's 26%. First- and second-year Singapore Permanent Residents on graduated rates see no change.
Sources
- CNA - Commentary: How super-aged Singapore should think about financial security (November 2026)
- Ministry of Finance - Occasional Paper on Income Growth, Inequality, and Social Mobility Trends in Singapore (9 February 2026)
- Ministry of Health - Trends in Integrated Shield Plan downgrades and discontinuations, written answer (9 September 2026)
- CPF Board on Ask.gov.sg - Changes to CPF contribution rates for senior workers from 1 January 2027
- CPF Board - Budget 2026 highlights, including the Budget 2026 CPF Top-Up (12 February 2026)
- Ministry of Health - Enhancing public education on right-sizing Integrated Shield Plan coverage, written answer (4 March 2026)
Keep exploring
- Integrated Shield Plan Comparison Singapore (2026)
- 4 things to know about the Budget 2026 CPF changes (February and March 2026)
- CPF savings by age group: how does your balance compare?
- CPF MediSave Care: $200/Month Cash for Severe Disability
- Integrated Shield Plan premium calculator
- Financial health check
This is general financial information for Singapore, not personal financial advice. Figures change, so verify current rates against the official sources above before acting. See our full disclaimer.
Junxiong-WFG Organisation is an authorised representative of AIA Financial Advisers Private Limited (Reg. No. 201715016G).