Charity proposes lower age eligibility for Lease Buyback Scheme, one-stop retirement planning platform

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.

Leap201 chairman Michael Lien said on Sept 9 that he believes that lower-income Singaporeans can be further supported in retirement planning.

“We recommend that they be given HDB monetisation options earlier in their life and easier access to their full financial outlook. This will give them more time to choose how much longer they work, if they monetise their housing and where they age,” he said.

Sing Tien Foo, provost’s chair professor of real estate at NUS Business School, who was part of the roundtable discussion, said lowering the eligibility age for the Lease Buyback Scheme would allow home owners to unlock more value out of their flats.

This is because a property’s value at the tail-end of its lease would have depreciated, he said.

Sing noted that, currently, flat owners are “locked in” if they tap the scheme, but they may not consider that their health could deteriorate as they age and they may need to downsize.

He said he agreed with the proposal for more flexibility for homeowners to move to community care apartments – flats that come with senior-friendly fittings and other health and community services.

Sociologist Tan Ern Ser, an adjunct principal research fellow at the Institute of Policy Studies, said seniors tend to postpone decision-making about retirement, hence the relatively low take-up rate for the Lease Buyback Scheme.

In August 2024, HDB said the take-up rate of the scheme remained steady at an average of 1,680 households annually over the last five years, and the vast majority of households received between $100,000 and $300,000 in proceeds.

By end-2024, 13,734 households had taken up the scheme.

The charity’s survey also found that 64 per cent of respondents felt under-prepared for retirement and were concerned about finances, caregiving responsibilities and employment security.

Leap201 suggested having a one-stop retirement planning platform to consolidate information and options – about housing, care and work – in one place.

It also proposed making it mandatory for employers to offer at least two days of family care leave for all employees, as 50 per cent of working caregivers report stress or burnout from work. But some panellists pointed out that two days could be insufficient and suggested flexible leave or work.

Other panellists included NTUC assistant secretary-general Patrick Tay, economist Walter Theseira and Nominated MP Terence Ho.

Jolene Chen, managing director of Leap201, said a key takeaway from the discussion was that seniors want flexibility – whether in terms of leave or monetising their flat.

She said the panellists’ suggestions will be incorporated into a white paper, which will be released in the fourth quarter of 2026.

Subsequently, the charity will continue its engagement with government agencies and practitioners to explore pilot policy efforts, such as the retirement planning platform, she added.