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HDB’s Silver Housing Bonus scheme

Recently, due to the pandemic, many people are afraid what if the economy really crashes down and recession happens especially for the elderly.

Well during march 2020, the HDB Silver Housing Bonus (SHB) scheme was enhanced to provide elderly Singapore households with greater financial support for their retirement. In this article, we will explain how the Silver Housing Bonus scheme works, who is eligible for it, and how it can support you or your parents during retirement.

How Does The Silver Housing Bonus (SHB) Work?

The Silver Housing Bonus (SHB) scheme provides elderly Singapore households with a cash bonus when they right-size to a 3-room or smaller flat, which can be bought either from HDB or the resale market. To qualify for the SHB, each senior household is required to top-up $60,000 from the proceeds of the sale of their existing home into their CPF Retirement Account and join CPF LIFE.

Who Is Eligible For The Silver Housing Bonus (SHB)?

  • To be eligible for the Silver Housing Bonus (SHB), homeowners have to meet the following criteria.
  • At least one owner has to be a Singapore Citizen aged 55 and above.
  • Gross monthly income for the household must be below $14,000.
  • The existing property they own must be an HDB flat or a private property with an annual value of $13,000 or less.
  • Homeowners cannot have concurrent ownership of a second property.
  • You must sell your existing property and purchase a 3-room or smaller HDB flat, either directly from HDB or the resale market.

The HDB flat you intend to buy must meet the following criteria:

  • Flat type: 3-room (excluding 3-room terrace) or smaller flat purchased from HDB (e.g. BTO) or the resale market
  • Timeframe: Flat can be either bought before sale of existing property, or within 12 months of completing sale of existing property
  • The purchase price of the flat must not exceed the selling price of the existing property

How Does The Silver Housing Bonus (SHB) Scheme Support Your Retirement?

The Silver Housing Bonus (SHB) scheme is particularly useful for elderly Singaporeans who own a large HDB flat they no longer need, and who do not feel they have enough retirement income.

For example, a Singaporean couple, both aged 55 in 2020, who currently have $50,000 each in their CPF Retirement Account, will receive about $485 to $531 via CPF LIFE each month from age 65 onwards.

Is HDB’s Silver Housing Bonus scheme worth considering?

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