There are currently two schemes available for eligible Singapore Senior Citizen to unlock cash from thier private property or HDB flat.
- Silver Bonus Scheme for elderly home owner (55 years and above) who choose to downgrade from either larger HDB flat or private property of annual value $13,000 or less to a 3‑room flat or smaller.
- Lease Buyback Scheme which allows elderly flat owner (63 years old and above) to live in his 3‑room or smaller flat for the next 30 years, but sell the remainder tail end of the 99-year lease back to HDB.
From 1 Feb 2013, a major change to Silver Bonus Scheme will see more cash proceeds to be given to the flat owner. Previously, all the proceeds from the sale of the flat has to be used to top up the CPF Retirement Accounts of the flat owners. This usually results in leaving the elderly flat owners with the $20,000 cash bonus given by the government for downgrading thier property. Under the new scheme, only $60,000 is required for topping up the Retirement Accounts of the flat owners in the household at first. The owners can keep the next $100,000 of the net proceeds from the sale of the flat. The excess amount beyond $160,000 will then be used to top up the Retirement Accounts further.
Under the Enhanced Lease Buyback Scheme, which also take effect from 1 Feb 2013, the cash bonus from the government will increase from $10 000 to $20 000, as long as the top up for the Retirement Accounts of the flat owners total to $60,000 or more. Otherwise, the cash bonus will be tagged to $1 for every $3 top up. The net proceeds from the sale of lease will be used to top up the lessees’ Retirement Accounts to the amount shown in the following table before up to $100,000 cash can be withdrawn.
|Lessee’s Age||To Top Up till CPF Retirement Account has:|
|≤70||Prevailing MS (currently $139,000)|
|71 – 79||Prevailing MS — $10,000 (currently $129,000)|
|≥80||Prevailing MS — $20,000 (currently $119,000)|
Amount in excess of $100,000 will be used to help the lessees with the lowest Retirement Account balance to meet the prevailing Minimum Sum (i.e. $139, 000 currently).
For more details on Silver Bonus Scheme and Enhanced Lease Buyback Scheme, please visit www.hdb.gov.sg.