Unlocking Retirement Income: How More Seniors Are Using Their HDB Flat Without Moving Out

Authored by Raymond Tiah

Singapore’s ageing population is reshaping how retirement is funded — and increasingly, the answer lies at home.

More elderly homeowners are now turning to the HDB Lease Buyback Scheme (LBS) — a practical way to unlock their flat’s value without giving up the comfort of their current home.

What’s Happening: A Quiet Shift in Senior Living

The Lease Buyback Scheme is growing in popularity. Instead of selling their homes or downsizing, seniors sell part of their flat’s remaining lease back to HDB. In return, they receive a cash boost, most of which goes into their CPF Retirement Account, thereby increasing their monthly CPF LIFE payouts.

It’s a retirement strategy that lets them “age in place” — and still access the value of their home.

Who’s Using It and What Are They Getting?

The majority of participants are living in smaller flats:

• 52% in 3-room or smaller

• 34% in 4-room

• 14% in 5-room or bigger

And it’s not small change — 9 in 10 seniors received between $ 100,000 and $ 300,000 from this scheme.

Bonus Top-Ups and Other Alternatives

There’s more. Seniors who use part of their proceeds to top up CPF also receive cash bonuses:

• Up to $30,000 for a 3-room or smaller

• Up to $15,000 for a 4-room

• Up to $7,500 for 5-room+

Alternatively, the Silver Housing Bonus offers up to $40,000 if they downsize and top up CPF — but this requires relocating.

Other Tools Gaining Traction

The LBS isn’t the only path. Room rentals remain a key option, with over 41,500 seniors renting out rooms in 2024.

For private homeowners, solutions like the DBS Home Equity Income Loan offer up to $ 350,000+ in proceeds, providing them with liquidity without the need to sell.

Still, many seniors prefer to stay put, and these schemes provide the flexibility to support that choice.

Final Word: Retirement on Your Terms Starts with Clarity

Singapore’s housing landscape is evolving, and with it, our approach to retirement.
More seniors are learning how to monetise their homes without sacrificing stability or comfort.

📩 Unsure which option suits your family’s needs?
Let’s find what works best for you.

🔴 Follow @raytiah318 or DM to explore your next step — no pressure, just clarity.

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