SINGAPORE – Allowing seniors to tap the Lease Buyback Scheme at a younger age, and setting up a one-stop platform to make retirement planning less intimidating, were among the policy recommendations by charity Leap201.
The proposals were drawn up after a survey of 1,000 seniors aged 50 to 59, and seek to plug gaps in retirement planning. They were discussed during a roundtable with representatives from various sectors – including public, private and academia – on Sept 9.
The seniors who were surveyed lived in three-room flats and about 80 per cent had a monthly income of below $5,000. Leap201 considered this group to be lower income, as their income was below the median of full-time workers.
The survey, conducted with research firm Verian, found that 60 per cent of respondents would consider selling part of their flat’s lease back to HDB to supplement their retirement income, but were not yet eligible to do so.
To this end, Leap201 suggested lowering the eligibility age for the Lease Buyback Scheme in phases, from 65 to 55.
The charity noted that, at present, those aged 55 to 64 can right-size with the Silver Housing Bonus – under which seniors can get up to $40,000 in cash – or apply for a community care apartment, but cannot take up the Lease Buyback Scheme.
It also proposed “a more seamless pathway” for owners who tap the scheme to move to a community care apartment, such as by transferring their remaining lease over.
At present, flat owners who make use of the Lease Buyback Scheme cannot sell their flats on the open market. If they wish to terminate their lease early, they will have to return the flat to HDB and receive a refund for the remaining lease.
Under the scheme, households can choose to retain lease lengths from 15 to 35 years – in increments of five years – as long as the remaining lease covers the flat’s youngest owner until the age of 95. The proceeds will be used to top up their CPF Retirement Account.
Read Full Article At Source
