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Lease Buyback Scheme designed to allow immediate and adequate payouts

The Lease Buyback Scheme allows seniors to monetise their flat for their retirement needs while continuing to live in it, by selling part of their remaining lease to the Housing and Development Board (HDB). Under the scheme, seniors top up part of their proceeds to their Central Provident Fund (CPF) Retirement Account and join CPF Life to receive a monthly income stream for life.

The Lease Buyback Scheme allows seniors to monetise their flat for their retirement needs while continuing to live in it, by selling part of their remaining lease to the Housing and Development Board.

The Lease Buyback Scheme allows seniors to monetise their flat for their retirement needs while continuing to live in it, by selling part of their remaining lease to the Housing and Development Board.

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Lim Lea Lea, Director (Branch Operations), Housing and Development Board

We refer to the letter, "Some conditions under HDB's Lease Buyback Scheme need to be reconsidered" (Aug 21).

The Lease Buyback Scheme allows seniors to monetise their flat for their retirement needs while continuing to live in it, by selling part of their remaining lease to the Housing and Development Board (HDB). Under the scheme, seniors top up part of their proceeds to their Central Provident Fund (CPF) Retirement Account and join CPF Life to receive a monthly income stream for life.

The CPF top-up requirement seeks to strike a balance between channelling the proceeds towards a retirement annuity on the one hand, and cash proceeds on the other. Seniors who take up the Lease Buyback Scheme are required to top-up their CPF savings to reach the current Full Retirement Sum, on a household basis. This ensures that their monthly payouts are adequate for their basic living expenses.

The qualifying age for the Lease Buyback Scheme is set at the CPF payout eligibility age of 65 to allow seniors to immediately receive their monthly CPF payouts when they take up the scheme.

Nevertheless, HDB is prepared to exercise flexibility on the age requirement, especially for those who are in ill health or financial difficulties. We will continue to take in feedback and review the terms of the scheme.

Those who wish to find out more about the Lease Buyback Scheme or other monetisation options are welcome to approach any HDB branch, or call the HDB Branch Service Line at 1800-225-5432 from 8am to 5pm on weekdays.

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