Over 12,600 elderly Singaporean households have tapped the HDB Lease Buy Back Scheme to unlock up to $300,000 in retirement cash without leaving their homes.
KEY POINTS
IN SIMPLE TERMS
Seniors aged 65 and older can sell part of their flat's remaining lease back to HDB and get cash to boost their retirement savings. Most people who do this receive between $100,000 and $300,000. The money can be kept as cash or put into their CPF retirement account for monthly payouts for life.
WHY IT MATTERS
WHERE DO YOU STAND?
Should the government do more to publicise and simplify access to the HDB Lease Buy Back Scheme for eligible seniors?
👍 👎 Vote ↓The HDB Lease Buy Back Scheme is helping elderly Singaporeans boost their retirement funds by selling part of their flat’s lease back to HDB.
According to The Straits Times, the HDB Lease Buy Back Scheme (LBS) is helping more elderly homeowners in Singapore.
The scheme lets elderly homeowners sell part of their flat’s lease back to HDB.
This helps them get money for their retirement.
The scheme started in 2009 for those aged 65 and older.
As of 30 June 2024, over 12,656 households have joined the scheme.
Here are some key highlights to note:
The money from the lease buyback is used to top up the CPF Retirement Account.
It’s also used to buy a CPF Life plan for monthly payouts for life.
The remaining cash, after the CPF Retirement Account top-up, will be returned to the homeowner.
Take a look at this quick table for a clear overview:
| Aspect of LBS | Details |
|---|---|
| Eligibility Age | 65 years and older |
| Average Annual Take-up | 1,680 households |
| Common Lease Retention | At least 30 years |
| Use of Proceeds | CPF Retirement Account top-up and CPF Life plan purchase, with the remainder after the top-up returned in cash |
The scheme gives extra cash bonuses from HDB.
These bonuses range from S$7,500 to S$30,000.
The amount depends on how much is topped up to the CPF.
You can keep lease lengths between 15 and 35 years, adding 5 years at a time, as long as the lease lasts until the youngest owner turns 95.
Just over half of the households in the scheme live in three-room or smaller flats.
The scheme may become more popular in the future.
Here’s why the HDB Lease Buy Back Scheme might grow in popularity:
As quoted in The Straits Times, Professor Sing Tien Foo from NUS Business School mentioned, “Seniors living in these homes are more likely to face financial constraints that will make the LBS more attractive to them.”
The HDB Lease Buy Back Scheme helps seniors who may not have enough in their CPF Retirement Accounts.
It also helps those who face money problems.
Some experts think not many people know about or can use the scheme.
This raises questions about how easy it is to join the scheme.
The Straits Times mentioned the story of Ramli Daud, a 67-year-old warehouse cleaner, which shows how the LBS can help seniors.
He opted for the scheme and received $216k – $133K as a CPF top-up and $83K in cash.
He can now take more breaks and not work as hard.
He can also afford to buy meals for friends and colleagues sometimes.
This shows how the scheme can improve seniors’ lives and social connections.
The HDB Lease Buy Back Scheme is helping many elderly Singaporeans improve their retirement funds while staying in their homes.
Should the government do more to publicise and simplify access to the HDB Lease Buy Back Scheme for eligible seniors?
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