Historical policy record
This article explains the CPF Advisory Panel’s 2015/2016 document. Amounts, account arrangements, projections and recommendations below belong to that publication, not current CPF entitlements, interest quotations or an investment offer. Check current CPF Board rules for an individual decision.
Four options
The annex compares renting spare rooms, renting the flat while living with children, right-sizing with Silver Housing Bonus and selling a tail-end lease through Lease Buyback. Its rental ranges refer to 3Q2014, while scheme extensions and top-up rules refer to April 2015. Family preferences, continued accommodation and retirement income must be considered together.
Right-sizing example
The historical Tan example sells a fully-paid S$450,000 four-room flat and buys a S$105,000 studio. After a S$60,000 CPF refund and purchase using S$45,000 cash plus S$60,000 CPF, cash is S$345,000. S$60,000 and S$95,000 go to Mrs Tan’s RA; a S$20,000 bonus leaves S$210,000 cash, Mr Tan RA S$77,500 and Mrs Tan RA S$155,000. The report estimates S$1,150 additional monthly CPF LIFE income.
April 2015 Lease Buyback parameters
The annex describes selling the tail lease while retaining a home, with proceeds used for specified RA top-ups. These tables are an archived policy snapshot.
| Youngest owner | Minimum years | Other years |
|---|---|---|
| Payout age (then 64)–69 | 30 | 35 |
| 70–74 | 25 | 30, 35 |
| 75–79 | 20 | 25, 30, 35 |
| 80+ | 15 | 20, 25, 30, 35 |
| Owner age | Sole owner | Each of two/more owners |
|---|---|---|
| Then payout age–69 | S$155,000 | S$77,500 |
| 70–79 | S$145,000 | S$72,500 |
| 80+ | S$135,000 | S$67,500 |
Lease Buyback worked example
Both Lims are 65 with a S$450,000 four-room flat and 65-year lease. Retaining 30 years and selling 35 yields S$190,000, split equally. From RA balances of S$20,000/S$5,000, top-ups are S$57,500/S$72,500 to reach S$77,500 each. S$60,000 cash plus S$10,000 bonus gives S$70,000; estimated additional monthly income is S$700. This illustrates the old rules, not a present property valuation or payout.