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What should I do when I am reaching 55?

Singapore Property Agent | Andik Imran | Real Estate Dad

“What should you do when you are reaching 55?”

Planning for retirement is important for everyone. Hence, we must know the various options that are available to us.

To supplement our retirement, there are actually policies to help in monetising our flat for retirement.

There are 3 main policies that you should consider:

  • Silver housing bonus
  • Lease buyback
  • 2 room Flexi

Silver Housing Bonus

The Silver housing bonus is when each senior household is required to top-up $60,000 of their proceeds(profits) into their CPF Retirement Account and join CPF LIFE. The maximum amount of top-up is capped at $60,000. The cash bonus based on a 1:2 ratio, i.e. $1 cash bonus for every $2 top-up made.

To qualify, you must be a senior or above the age of 55 Singapore Citizen looking to sell your current HDB flat or a private home (Annual Value not exceeding $13,000) to buy another three-room or smaller flat. HDB will provide you with a cash bonus of up to $30,000.

The Proceeds is calculated by taking the Selling price of the current property minus 1) the sum of any outstanding loan on the current property, 2) the purchase price of the next flat, and 3) the resale levy payable.



Selling Price
Outstanding Loan
Purchase Price
Resale Levy Payable


For seniors whose property transactions are profitable and have met their basic retirement, this is one of the recommended ways to increase your net worth.

Pros :

  • This scheme is great as there is an incentive to top our retirement account up to $30000.
  • By topping up the retirement account, you will have a higher monthly payout for your CPF Life

Cons :

  • The downside of the scheme is that once the monies are in the retirement account, we can’t take it out anymore.
  • We have to downgrade our lifestyle to enjoy this scheme.

Lease buyback

Lease buyback is simply to sell part of your flat’s lease to HDB. You have to choose and retain the lease length based on the age of the youngest owner. The proceeds from selling part of your flat’s lease will be used to top up your CPF Retirement Account (RA). You can then use your CPF RA savings to join CPF LIFE, which will provide you with a monthly income for life.

You can sell the end tail of your remaining lease to HDB to receive a one-time Lease buyback bonus of up to $30,000. The sales will be used to top-up the Retirement Account as stipulated by CPF and HDB.

Pros :

  • Maintain your current lifestyle as you will be staying in your own home.
  • By topping up the retirement account, you will have a higher monthly payout for your CPF Life
  • Might have the cash proceed after topping up the required amount

Cons :

  • Each household can only have a maximum of $100,000 in cash proceeds.
  • You can’t will anything when you pass on.
  • Cash top-up requirements are required.
  • Occupiers will need to leave the house after owners pass on.

2 room Flexi

A 2 room Flexi has a lease of between 15 and 45 years in 5-year increments. Buyers have to buy a lease that covers them and their spouse up to the age of at least 95. This is the only HDB unit with an Optional Component Scheme, where the flats are in move-in condition. Fittings include lighting (whole unit), window grilles (whole unit), built-in kitchen cabinets with gas hob and cooker hood, kitchen sink, tap and dish drying rack, built-in wardrobe, water heater and mirror and toilet roll holder in the bathroom.

Pros :

  • Generally cheaper than all the housing units sold by HDB
  • Can opt-in to have a move-in condition unit
  • Might have the cash/CPF proceeds after downgrading

Cons :

  • You can’t will anything when you pass on.
  • Occupiers will need to leave the house after owners pass on.
  • Can’t rent out room/ whole unit
  • Can’t sell the unit

I hope you will study the pros and cons and also explore all alternatives out there. Before committing, make sure you do your math or work with a trusted and knowledgeable agent who can guide you through.

All the best in your next property journey.

Andik Imran

Engage a professional Singapore real estate agent

ANDIK IMRAN | BSc Business
CEA Reg No: R061801F

9450 8732
PropNex Realty Pte Ltd

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