The Hidden Retirement Killer: Why Ignoring Hospital Insurance Can Cost You Big

Imagine this.

After decades of hard work, you will finally enjoy your dream retirement.

You have saved diligently and invested carefully, and now it's finally time to enjoy your golden years.

Because of the lack of income, you started to dread every bill that came to you.

Every bill eats into your savings.

It is one of the biggest bills and a rising and recurring one.

Hospital insurance premium.

Most people plan for retirement by considering what they need for their daily expenses. But they neglected to prepare for this recurring and rising cost, the hospital insurance premium.

This can erode your retirement fund.

If you don't plan for it, you can get derailed faster than you think.

Let's uncover how this hidden danger works and how to protect yourself before it is too late.

Cost Of Hospital Insurance

If you are keen to get the best healthcare available in Singapore and also want to lessen your waiting time, private healthcare insurance is the way to go.

However, this is also the most expensive selection out of the hospital insurance.

Let's take a look at this table that shows the hospital insurance premium of private healthcare for one of the insurers in Singapore.

The average life expectancy in Singapore is 83 years old in 2023.

Assuming one lives to 83 years old, the cost of a private health hospital insurance with a premium rider will set him aside by $130,433.

Usually, the insured will add on a rider to help him cap the co-insurance bill that he has to pay if he were to be hospitalized.

Below is the rider's premium for one of the insurers in Singapore.

I tabulated the total cost for the rider if one were to live until the age of 83 in Singapore. The total amount is $276,904.

Adding both integrated shield and rider premium together, you get a grand total of $130,433 + $276,904 = $407,337.

What are some of the scary things that I observed over here?

1. $407,337 is a lot of money. If you are planning for your retirement, are you able to fork out just this amount for your health care? And if you can set aside this amount for your health care, how will your retirement planning be affected?
2. This amount is calculated if the person lives until 83 years old. What if the person lived until 90 years old? How much more will the person incur, and how will retirement be affected?
3. The total amount calculated also does not take into account future premium increases next time. The odds of premium increases are possible because of inflation.

Possible Solutions

1. Downgrade Your Hospital Insurance from Private To Restructured Hospital.

I discourage you from taking this move.

The reason is that Singapore currently has a population of 6 million. And you see news like this below.

Singapore's ambition is to have nearly 7 million people in the population by 2030. So, how will the speed of health care and hospital bed crunch situation be then?

Even though downgrading your hospital insurance to a restructured hospital is a viable way. It is not the recommended way if you want to prioritize the speed at which you receive your health care when you fall sick.

2. Downgrade Your Rider

I can't go too in depth on this segment. Because every insurer does up their riders differently.

But from my experience, I sometimes don't see good value for money for some insurers for their "most premium" rider.

Downgrading your rider can be a way to cut down on costs.

In the above premium table, I shared the rider's cost. Downgrading just the rider will help save 50% of the cost. That would be around $130,000!

If this is the option that you are looking at, look for your financial advisor and have a discussion about it. If you want to discuss it, reach out to me via DM, and I see if I can help to provide more clarity.

3. Plan For The Cost Of Maintaining Your Hospital Insurance Premium During Your Retirement

The above image is the total premium for one of the insurers in Singapore.

Assuming you retire at 65 years old. The total premium that you will pay from 65 to 83 (assumed life expectancy) will be $84,396 + $171,169 = $255,565.

If you divide it by 18 years (83-65), the total cost per year will be $14,198 per year for 18 years.

Adding this figure with added inflation toward your retirement planning will help prevent you from being caught by surprise by the rising cost of health care insurance premiums during the period when you require it the most.

What Should You Do Next?

1. Assess your current hospital insurance plan to ensure it aligns with your long-term goals.
2. Meet with a financial advisor to integrate healthcare costs into your retirement plan.
3. Set up an annual review to reassess your premiums as you age.

Don’t Wait—The Future Belongs to Those Who Prepare Today.

Healthcare premiums are rising, and retirement should be a time to enjoy life, not worry about bills. Take control now. The earlier you start planning, the more options you’ll have.

If you’re unsure where to begin or need a review of your current plan, reach out to me via DM. Let’s make sure you have a solid plan that keeps you protected without compromising your lifestyle.

Retirement is a time to enjoy the freedom you've worked hard for. Don’t let unexpected healthcare costs steal that joy—plan now and secure the peace of mind you deserve

P.S. Big changes start with small steps. Subscribe to my newsletter Calm Pursuit for quick insights on building wealth and living better