How the Silver Housing Bonus Can Support Your Retirement Plan

It is best to think about your future before reaching retirement age. Where do you intend to get your retirement income? What will you do with your pension if you have one? Are you going to live alone or try assisted living in Singapore?

Another thing to consider, especially for those with big homes or flats, is how to utilise private property to make the most of it as you age. In this case, you may want to look into HDB notice on Silver Housing Bonus to cash in while ensuring that you'd continue living comfortably in your senior years.

This article will shed light on the Silver Housing Bonus SHB, including eligibility and how the Silver Housing Bonus scheme can support you in your retirement years.

Silver Housing Bonus (SHB) - The Definition

The Silver Housing Bonus SHB program in Singapore was created to help senior citizens who want to downsize their homes financially. It permits senior homeowners to trade cash proceeds from the sale of their larger flats and purchase smaller units or buy resale flats for a cash bonus of up to S$30,000.

It is a component of the government's efforts to support Singapore's ageing population and ensure that the elderly have enough money to support themselves in their later years.

Seniors must fulfil specific requirements to be eligible for the Silver Housing Bonus SHB cash bonus. The size of the old HDB flat that a senior is selling and the size of the new flat that they are buying determine the amount of cash bonus that seniors can earn under the Silver Housing Bonus scheme.

Older adults may be eligible for a financial bonus of up to S$30,000 if they move into an apartment at least two rooms smaller than their previous apartment. Downsizing to a one-room apartment might earn you a cash bonus of up to $15,000 in Singapore.

The Silver Housing Bonus SHB program was designed for seniors who want to downsize their houses and increase their chances of retiring with a substantial cash bonus from their existing property. The cash bonus can supplement retirement income or pay for costs associated with moving elders into new flats or nursing homes in Singapore.

The Silver Housing Bonus is only one of many programs the Singaporean government has established to guarantee that senior Singapore citizens can access financial resources and housing options that match their needs.

Silver Housing Bonus - How Does it Work?

The Silver Housing Bonus is available and encourages senior households that meet specific requirements. They must have met the minimum occupation period (MOP) for their HDB flat. The room flat must have at least one owner who's a Singapore citizen, and they must be at least 55 years old and have been in their current apartment for at least five years. A smaller flat must be purchased within six months of the sale of their current HDB flat.

For seniors wishing to improve their financial status, pay an outstanding loan, and supplement their retirement income, the Silver Housing Bonus can be useful. They could utilise the money to pay for their retirement or other requirements or unlock their HDB flat's worth. By downsizing to a 3-room or smaller flat, it can also assist them in lowering their monthly expenses.

However, seniors should carefully weigh their options before taking advantage of the program. You should compare the advantages of downsizing with the expenses, such as transaction fees, taxes, and moving charges. Additionally, you must think about whether a smaller flat will suffice for your future demands.

For additional information on the Silver Housing Bonus program and how it can help seniors, it is best to speak with a financial counsellor or an HDB representative. Ensure that you also conduct market research, evaluate the purchase price of your current apartment, and calculate the expenditures and net sale proceeds associated with buying a smaller flat.

Silver Housing Bonus (SHB) - Are You Eligible?

Seniors interested in applying for the SHB can do so by visiting any HDB branch or the Housing and Development Board (HDB) website.

Here's a look at the eligibility criteria for the SHB:

  • The HDB flat must have at least one owner who's a Singapore citizen

  • The owner of the current property must be 55 years or up, with a $14,000 monthly household income ceiling

  • This must be the sole private property of the owner, meaning they must not have concurrent ownership of a second property.

  • The annual value of the private housing (current property) must not exceed $13,000.

  • The owner must meet the minimum occupation period for the resale market purchase price for the HDB flat.

  • The next flat the owner will buy must not exceed the selling price or the net proceeds of the sale of the existing property.

  • The new HDB flat must also be a smaller flat from the resale market or HDB or a 3-room or smaller flat excluding a 3-room terrace.

When applying to buy a resale flat or book a new HDB flat, accomplish it within a year of completing a sale of the existing flat or before the sale of the current property minus the concurrent ownership of any other property.

You must apply within a year from the second housing transaction date of completion, whether a purchase or a sale of existing property.

How Can I Calculate Net Proceeds for Silver Housing Bonus?

Sample Calculation of Net Proceeds

Current flat sale price


Amount used in buying next property


Outstanding home loan


Refund to CPF account


Ancillary costs - Deductible of up to S$15,000


Resale levy 


Net Sale Proceeds


Start by calculating the net revenues from the sale of your current apartment to assess your prospective gains from the Silver Housing Bonus. This entails deducting different expenses from the proceeds of the sale, such as the cash used to buy the new property, current property loan balance, resale levy, CPF refund, and deductible ancillary expenditures.

How Much Cash Bonus Will I Get in SHB?

Net Sale Proceeds

SHB Cash Bonus

Proceeds Kept in Cash

CPF Top-up Requirement



S$100,000 plus any remaining after further top-up

S$60,000 plus Top-up to Full Retirement Sum

S$60,000 to S$160,000


S$0 to S$100,000


Up to S$60,000

S$1 for every S$2 top-up


All net sale proceeds

The net sale proceeds and the deposit made to the CPF Retirement Account are both used to calculate the Silver Housing Bonus cash bonus. The maximum SHB of S$30,000 is available to anyone who uses their net proceeds to top up their CPF Retirement Account with at least S$60,000. Meanwhile, people who make contributions to their retirement accounts of less than S$60,000 will receive S$1 for every S$2 invested.

More About the Required Top-Up Amount

The top-up amount per household is capped at $60,000. A senior household applying for SHB must join CPF LIFE. They must also top-up cash proceeds to the CPF retirement account RA.

This means that topping up your CPF retirement account RA with $60,000 will allow you to enjoy $30,000 for every household, which is the maximum cash bonus. However, if the top-up is lower than $60,000, the ratio 1:2 will be used to compute the pro-rated cash bonus you'll receive.

Supporting Your Retirement Income with the Silver Housing Bonus

The SHB is a one-time sum that is intended to help seniors supplement their retirement income. The bonus is contingent on several factors, including the cost of the new apartment, the amount of CPF taken, and the annual value of the senior's retirement income.

It offers a good fallback in case you want to downsize your home by moving to a smaller flat but generate money from selling an existing property. Your cash bonus will add up to your monthly retirement income. Besides, a smaller HDB flat may be more convenient and easier to maintain for older adults living on their own or with one or two companions.

The Difference Between the Lease Buyback Scheme and Silver Housing Bonus

The two schemes are both monetisation options with varying designs and compensation.

As previously stated, the SHB offers up to $30,000 to seniors who will opt to purchase a 3-room or smaller room flat, after selling their current room flat. The cash bonus is enough for retirees to supplement their retirement income.

It is required to acquire a CPF LIFE to ensure you will receive a consistent stream of monthly cash payments. To do this, you must add to your CPF Retirement Account part of the net sale proceeds of the existing property, amounting to $60,000.

On the other hand, the Lease Buyback Scheme (LBS) allows owners to sell the remaining leases of their current flat to the HDB and gain profit from the scheme and a full cash bonus. This option is available for those with at least 20 years of lease. You can do this to continue residing in your HDB flat while also receiving the proceeds of the sale and the cash bonus.

However, just with the SHB, you must first deposit the proceeds from the sale into your CPF Retirement Account. If there are two or more owners, use the Basic Retirement Sum and the Full Retirement Sum if there is one owner. Only then will your dependent be able to avail of the cash bonus, which will depend on the flat type you own.

Other Criteria You Must Be Aware of Regarding Silver Housing Bonus (SHB)

Before applying for SHB, take a look at the other criteria you must be aware of:

  1. Savings cannot be used to supplement your net sale proceeds.

Only the sale of your proceeds will allow you to top up. Therefore, you cannot use your funds to make up the difference if the net selling proceeds are less than $60,000.

  1. Applying for the Lease Buyback Scheme (LBS) will make you ineligible for SHB.

Although they both serve as monetisation possibilities, their designs and functions differ. For seniors who would rather sell their current home and get a three-room or smaller flat, SHB is the better option.

LBS, on the other hand, is for seniors who wish to remain in their current apartment and sell the balance of the second property and the lease to the HDB.

  1. Your CPF Retirement Account top-up funds will be utilised to purchase the CPF LIFE plan.

This implies that you will get bigger monthly dividends as long as you live.

Get in touch with us.

Learn more about Red Crowns. You may contact us for more information about our services and locations, get a quote or to schedule a tour.
+65 9800 5297
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram