Retirement Plans: Unlocking Your HDB Flat Value

It's always a good idea to consider your financial security for retirement, specifically how you can increase your income after you stop working. Aside from relying on CPF funds, personal savings, and potential investments, homeowners also have the option to access the value of their HDB flats as a source of income during their golden years. Depending on your individual needs and preferences, here are several methods you can use to make money from your HDB flat:

1. Continue living in your flat

A couple named Mr and Mrs Lim, who are both 65 years old, decided to participate in the Lease Buyback Scheme (LBS) to maintain their current residence. They received a sum of $58,300 in cash, a monthly payout of $1,090 from CPF LIFE, and an additional cash bonus of $7,500.

If you've met the minimum occupancy period (MOP), you can think about making money from your flat through the Lease Buyback Scheme (LBS). Want to know more? Take a look at the eligibility requirements for LBS below, or visit the HDB InfoWEB.

If you're under 65 years old, you can consider renting out your extra bedroom(s) to earn some extra money. Just make sure to apply through My HDBPage or Mobile@HDB before the rental period starts, and take a look at CEA's template for tenancy agreements in HDB flats.

2. Moving out and purchasing a 3-room or smaller HDB flat

Mr. and Mrs. A recently sold their 5-room flat, which they originally purchased from the Housing Development Board (HDB). They used the funds from the sale to purchase a 2-room Flexi Built-to-Order (BTO) flat. As an additional benefit, they were eligible for a Silver Housing Bonus (SHB) of $30,000, which they received along with the proceeds from the sale.

The Special Housing Bonus (SHB) is applicable when homeowners add funds to their CPF Retirement Account (RA) using the money they receive from selling their homes. You can find the eligibility criteria either below or on the HDB InfoWEB.

To stay updated on how to make money from your apartment for retirement, check out HDB InfoWEB. Additionally, if you're not looking for extra retirement income but are interested in learning about elder-friendly housing policies, here are five important details about the Community Care Apartments.

Source: mynicehome.gov.sg.