It is never too early to plan for your retirement! Familiarising yourself with the various ways of unlocking the value of your flat allows you to select the best option for a comfortable retirement.

There are 4 options for you to monetise your HDB flat – apply for the Lease Buyback Scheme (LBS) or Silver Housing Bonus (SHB), rent out your flat, or rent out a spare bedroom. Ultimately, the decision you make will depend on your needs and requirements!

Lease Buyback Scheme (LBS)

LBS allows you to sell the tail-end of your flat’s lease to HDB, and receive a cash bonus of up to $20,000, depending on your flat type.

This is an option you can consider if you wish to stay in your current flat, but need the extra cash for retirement. Part of the proceeds will be used to top up your CPF Retirement Account (RA) and join CPF life. CPF life is an annuity scheme that provides Singaporeans and Permanent Residents with a monthly payout for as long as they live. The top-up amount depends on the prevailing Retirement Sum and the starting balance in your CPF RA. The great news is that you can keep any balance proceeds as cash!

To qualify for LBS, here are some conditions you need to meet:

  • Have at least 20 years of lease to sell to HDB after retaining enough lease to last the youngest owner until age 95
  • At least 1 Singapore Citizen owner
  • All flat owners must be aged 65 years and above
  • Gross monthly household income not exceeding $12,000
  • Fulfilled the Minimum Occupation Period of 5 years for resale
  • Do not own other properties

Silver Housing Bonus (SHB)

Meanwhile, you can consider applying for SHB if you are planning to right-size from a bigger flat to a 3-room or smaller flat. Unlike the LBS, you have to sell your flat, rather than just the tail-end lease of your flat. Both schemes require you to top up your CPF RA to meet the Retirement Sum, and allow you to keep any balance cash proceeds.

Again, whether you choose to apply for LBS or SHB, depends on your needs. The key deciding factor is whether you want to or are able to move out of your existing flat.

The qualifying criteria to apply for SHB:

  • Right-sizing to a 3-room or smaller flat, from a bigger flat or private property with Annual Value not exceeding $13,000
  • At least 1 Singapore Citizen owner aged 55 or above
  • Gross monthly household income not exceeding $12,000
  • Fulfilled the Minimum Occupation Period of 5 years for resale
  • Do not own other property

Renting Out Your Flat or Spare Bedroom

If you have alternative accommodation, you can consider renting out your flat. This way, you can receive rental income to supplement your retirement! For this, you need to be a Singapore Citizen flat owner, and must have fulfilled the Minimum Occupation Period of 5 years.

For those not wishing to move and are living in a 3-room or larger flat, you have the option of renting out a spare bedroom.

These are the 4 options to help you plan for a comfortable retirement! Let us know if you found this article useful in the comments below!

  • Atikah Abdul Razak

    The designated content creator in the team whose latest obsessions include interior design and cooking.