.png)
Thinking about downsizing for retirement? The Housing & Development Board (HDB) offers the Silver Housing Bonus (SHB) to help you unlock extra cash and enjoy a more manageable living space in your golden years.
What is the Silver Housing Bonus?
The SHB is a government incentive that provides a cash bonus of up to S$30,000 to Singaporean citizens aged 55 and above who choose to downsize to a smaller HDB flat. This bonus can be a significant boost to your retirement income, giving you greater financial security.
How Does it Work?
To qualify for the SHB, you must sell your current property, which can be an HDB flat or private housing with an Annual Value not exceeding S$21,000. Then, you need to purchase a 3-room or smaller HDB flat. You’ll then need to use a portion of the proceeds from selling your current home. These proceeds are the difference between your selling price and the cost of your new, smaller HDB flat. This money will be used to boost your retirement savings by topping up your CPF RA.
Minimum and Maximum Top-Up Amounts: There's no minimum amount you need to top-up, but there's a limit. The maximum top-up amount is capped at S$60,000 per household.
Maximizing Your Bonus: The good news is that if you top-up the full S$60,000, you'll unlock the maximum SHB cash bonus of S$30,000. This bonus is a significant addition to your retirement income.
Receiving a Pro-Rated Bonus: If you can't top-up the full S$60,000, don't worry! You'll still be eligible for a bonus, although it will be a smaller amount. The SHB offers a pro-rated bonus based on a 1:2 ratio. This means for every S$2 you top-up, you'll receive an additional S$1 in bonus cash.
Example
Let's say you sell your current home for S$300,000 and use S$200,000 to buy a smaller flat. Your sales proceeds would be S$100,000 (S$300,000 selling price - S$200,000 new flat price). If you choose to top-up the full S$60,000 to your CPF RA, you'll get the maximum bonus of S$30,000. But, if you can only top-up S$40,000, you'd still get a bonus of S$20,000 (S$40,000 top-up / 2 * $1 bonus per S$2 top-up).
Benefits of Downsizing with SHB
Financial Gain: Receive up to S$30,000 cash bonus to supplement your retirement income.
Lower Maintenance Costs: A smaller flat means lower maintenance fees, utility bills, and cleaning time.
Easier Management: A more manageable living space can be especially beneficial if your mobility is reduced.
Improved Accessibility: Many newer HDB flats offer senior-friendly features for easier living.
Downsizing doesn't have to mean downsizing your lifestyle. The Silver Housing Bonus from HDB can help you make a smooth transition to a more manageable and financially secure retirement.
For more information on the Silver Housing Bonus, please visit the HDB website.
Comments