Why The Government's Budget Shapes Yours

This reality is most visible in the national budget. Government expenditure on healthcare is on a steep upward trajectory, projected to increase from SGD 18.2 billion in 2024 to an estimated SGD 29.8 billion by 2030. This surge is driven by an ageing population where the median age has already climbed to 42.8, with nearly one in four Singaporeans expected to be over 65 by that same year. To fund this and other essential services, difficult decisions like the recent two-phase GST increase were deemed necessary. This tax is not merely an administrative adjustment; it is a direct mechanism to ensure revenues keep pace with the escalating costs of maintaining the nation's high standard of living.

The connection is direct and measurable. While Singapore's GDP is forecast to grow between 1% and 3% in 2024, this growth must be seen in the context of global headwinds and economic restructuring. The government's push to position the nation as a reliable "plus one" destination for businesses diversifying away from other regions is a strategic move to secure high-value jobs. For the individual, this means that personal income growth is no longer guaranteed by mere loyalty or tenure.

It is now inextricably linked to one's ability to contribute to high-value sectors. A 1% increase in labour productivity can have a profound long-term impact on GDP per capita, directly influencing the resources available for both public spending and private wages. The stagnation of the national pie would lead to stagnating real wages, making it harder to save, invest, and afford major life goals like housing and retirement. Therefore, national productivity is not a distant economic indicator—it is a direct influence on the money in your pocket.

This principle is most evident in the retirement system. The Central Provident Fund (CPF) is designed as a personal, not a collective, savings vehicle. The steady increase in the Basic Retirement Sum (BRS)—which stands at SGD 102,900 for those turning 55 in 2024—alongside the Full Retirement Sum (FRS) of SGD 205,800, is a direct policy response to rising life expectancy and future living costs. It is the government’s way of ensuring individuals have a baseline for their own retirement, reinforcing the message that the state provides the framework, but the individual must build the structure.

This approach requires a mental shift from expecting universal subsidies to strategically planning for a future where personal savings bear a heavier load. Moderating expectations is a core part of this new reality. For instance, the high demand for public housing, with BTO application rates in some mature estates exceeding 10 first-time applicants for every available four-room flat, means not everyone will secure their first-choice home. The "we-first" model prioritizes families with more urgent needs, asking others to be flexible, adjust their timelines, or consider different locations.

If the nation is focused on tackling the challenges of an ageing population, the individual's financial plan must aggressively account for future healthcare costs beyond basic MediShield Life coverage. Even with subsidies, out-of-pocket payments can constitute a significant portion of healthcare bills, making private insurance or dedicated savings crucial. This means consistently topping up one's Medisave Account and factoring in the potential costs of long-term care, which can range from SGD 2,000 to SGD 4,000 per month for a nursing home.

Similarly, as Singapore carves out its niche in the global economy, personal career and skills development cannot be random. It must be strategic. Aligning reskilling efforts using the new SGD 4,000 SkillsFuture Credit top-up with nationally identified growth sectors—such as green finance, artificial intelligence, or advanced manufacturing—transforms personal development from a passive exercise into a direct investment in one's future earning power. In this partnership model, the government provides the roadmap, but the onus is on the individual to drive, navigate, and reach the destination.

​The most resilient financial plan for the future is one that is built not in opposition to these national trends, but in concert with them. It means internalizing the principles of self-reliance, strategic upskilling, and prudent planning, not just as good financial habits, but as a necessary response to the clear-eyed realities of Singapore's economic journey. The individuals who thrive will be those who see the national budget not as a government document, but as the foundational blueprint for their own.