Why is property retirement planning important?

For senior Singaporeans, property can be an important asset as they enter retirement.

Firstly, it is a place for adequate shelter and living environment, especially with various government initiatives such as HDB’s Home Improvement Programme, BCA’s Accessibility Regulations.

Secondly, a potential source of recurring income, such as rental income, HDB’s lease buy back scheme, etc. Home owners can get funding through refinancing, sale of property, or downgrading to a smaller unit.

Thirdly, it is a security hedge against inflation. Inflation is eroding cash savings, however, property price and rentals tends to appreciate at a faster pace than inflation index in Singapore.

Types of Properties for Seniors

In Singapore, there are various housing options for elderly citizens, including:

1. Public Housing (HDB) – Most elderly citizens live in public housing, which offers various options for seniors, including smaller units and rental housing.

1. 1. Typical HDB Flats
   2. 2 Bedroom flexi flats on a shorter lease
   3. A new housing typology with senior friendly fittings

2. Private Housing – Some elderly citizens live in private housing, which may offer more space and amenities, but is typically more expensive than public housing.
3. Senior Living Communities – These are purpose-built communities that cater specifically to the elderly and offer various levels of care, including assisted living and nursing care.
4. Home Care Services – For elderly citizens who wish to stay in their own homes, there are various home care services available that can provide assistance with daily living tasks and medical care.

Financial Assistance Schemes

The government of Singapore provides various financial assistance schemes for elderly citizens to help with housing costs, including the Silver Housing Bonus, Proximity Housing Grant, and the Lease Buyback Scheme.

1. Silver Housing Bonus, receive up to $30,000 cash bonus per household, when you sell your current flat, buy a 3-room or smaller HDB flat (lower value than the sold flat), top-up the proceeds into your CPF Retirement Account, and join CPF LIFE.
2. Proximity Grant, when buying a resale HDB flat to live near ($20K) or with married children / single child 35 years or older.
3. Lease buy back scheme, it is a scheme that allows HDB owners who are Singaporean and 65 years or older to sell part of the lease back to HDB and get one time cash proceed, CPF Life monthly payout, and cash bonus.