How to navigate healthcare challenges and employee benefits in a longevity economy

As Singapore becomes a super-aged nation, healthcare leaders share strategies to tackle rising medical costs while meeting evolving needs of employees.

The Singapore Health Forum hosted by Mercer Marsh Benefits brought together nearly 500 industry leaders to discuss the impact of an ageing society, emerging healthcare trends, and workforce expectations in the longevity economy. A panel on corporate healthcare costs amid Singapore’s ageing population was held, featuring Dr Carol Tan from The Good Life, Sandeep Nair from Singlife and Adrit Raha from Mercer Marsh Benefits, moderated by Chor Khieng Yuit from The Straits Times. The session offered five practical takeaways for employers to balance affordability, quality, and sustainability in healthcare while addressing the evolving needs of their workforce.

1) Proactive, not reactive care

“Addressing multi-generational needs requires early education and awareness in the importance of preventive health, understanding health risks and wellness, because achieving success in these areas is a long-term journey that takes years of thoughtful planning.”

The primary goal is to enhance utilisation in the appropriate areas with the proper use of resources, rather than delaying care that could lead to higher costs in the future. Sandeep said that employers must shift from a reactive to a proactive approach. He cited that extending coverage and offering health screenings, corporate wellness programs, wellness benefits, and employer-led health interventions are examples of proactive steps and preventive care businesses can take.

2) Personalisation is key

“Rethinking the scope of benefits to make structural changes that reflect multi-generational needs — be it gender-based, age-based, or shaped by lifestyle preferences and risk factors — ensuring inclusivity and relevance for all.”

The panellists reiterated that health benefits must be personalised to stay relevant and aligned to employees’ life stages and needs as consumption patterns are now different. However, Sandeep cautioned that “only a sliver of employers” are designing tailored or tiered new-age benefits, and even fewer are effectively communicating these benefits to employees, which is key to instilling trust in employers.

Dr Tan shared that it’s important that employers are familiar with their employees’ physiological ages, and not just their passport ages. Based on this, employers should consider the different roles of employees across their organisations and their varying needs, especially the more vulnerable cohort.

3) Flexibility for unique needs

“Expanding our definition of benefits allows us to unlock targeted benefits for different cohorts, such as parent caregivers or the sandwich generation, and to focus on high-value wellness and longevity solutions that truly meet their unique needs.”

Flexible benefits, which give employees a set budget to allocate options that matter most to them, were identified as a powerful tool for balancing choice and cost control. According to Adrit, flexibility allows HR leaders to “cap costs, put structure to the cost, and make it relevant for employees to pick what they want.”

Meanwhile, Dr Tan emphasised that flexibility should be complemented with making informed choices, supported by the right education in health and financial literacy — enabling employees to effectively allocate resources, take responsibility for their well-being, and build financial resilience as they live longer — particularly in managing healthcare costs and care for the elderly.

4) Building on data

“At the heart of all these strategies is the power of insights. Understanding employees’ wants and needs enables targeted interventions, allowing benefits plan managers to be more precise and impactful in supporting their workforce meaningfully.”

One area that many insurers and employers underutilise is the use of data and AI in healthcare. Adrit echoed this and added that technology can now make personalisation more affordable and scalable, allowing employers to dial up or down to match benefits with their needs without breaking budgets. Most importantly, by leveraging technology and data to analyse claims, health records, and behavioural data, organisations can also identify high-risk groups, tailor interventions, and optimise benefits for different groups.

Sandeep shared that the next likely evolution is to pivot to data analytics to provide further personalisation. For example, data should help companies focus on preventive healthcare with differential benefits for various clusters of employees.

5) Embrace healthy ageing

“While everyone aims to add years to our lives, we must also focus on adding life to those years.”

The panellists repeatedly returned to the idea that healthy ageing is a holistic effort that requires collaboration between government, employers, insurers, and individuals. For businesses, this involves designing relevant benefits, partnering with public health initiatives, working with insurers to secure sustainable financial coverage, tapping government funding where available, and embedding preventive care into workplace culture. For individuals, it means taking responsibility and accountability for their own health outcomes as well as financial planning.

The right benefits strategy, when communicated effectively to employees, can contain costs for employers; reduce reliance on expensive and reactive treatments; strengthen talent retention by showing genuine care for employee well-being; and improve organisational resilience. As Dr Tan pointed out, longevity is not just a demographic fact — it’s a business imperative to ensure that people can live healthily and work effectively into later life, aligning their work span and health span with their overall life span.

Build a sustainable workforce now

By 2026, Singapore is expected to surpass the 21% over-65 threshold, marking its transition to a “super-aged” society. The panellists drove a key message: Singapore’s ageing population and rising healthcare costs demand immediate, coordinated action among different parties. Employers who act now can transform these challenges into opportunities to innovate and lead.

Speak to our experts today to design a future-ready benefits program for your multi-generational workforce.