Enhancements to Silver Housing Bonus to boost retirement income for seniors right-sizing their homes

At MND’s Committee of Supply debate today, Minister for National Development Mr Desmond Lee announced several enhancements to the Silver Housing Bonus (SHB) to provide greater support to seniors who right-size to a 3-room or smaller HDB flat to supplement their retirement income. The following enhancements will take effect from 1 December 2025:

Adjustment to the eligibility criteria so that seniors will qualify for SHB when they commit to a net increase of up to $60,000 in their CPF Retirement Account (RA) after right-sizing, with the sum going towards their retirement payouts. The amount can come from their CPF housing refunds[1], which means that seniors may no longer need to make a cash top-up to qualify for the SHB;

Additional $10,000 cash bonus for seniors who right-size to a 2-room or smaller flat, including Community Care Apartments (CCAs), bringing the maximum SHB quantum to $40,000 (from the current $30,000); and

Extension of eligibility for SHB to seniors who right-size from a private residential property with an Annual Value (AV) between $21,000 and $31,000.

Currently, seniors qualify to receive SHB of up to $30,000 if they make a cash top-up to their CPF RA using part of their net sale proceeds[2] from right-sizing and when they join CPF LIFE. The required cash top-up amount depends on the net sale proceeds and is capped at $60,000 per household. If the cash top-up is less than $60,000, the cash bonus is pro-rated at $1 bonus for every $2 of cash top up into their CPF RA.

The cash top-up requirement will be adjusted such that seniors will qualify for the SHB as long as they commit to a net increase of up to $60,000 in their CPF RA after right-sizing, for their retirement payouts. This amount can come from their CPF housing refunds, which means that seniors may no longer need to make a cash top-up to qualify for the SHB. Details are set out in Table 1.

Table 1: Changes to the CPF requirement for SHB

Current

With effect from 1 Dec 2025

CPF RA requirementA

Cash top-up required depends on proceeds, capped at $60,000 per householdB:

· If net sale proceeds ≥$60,000, cash top-up to RA must be $60,000.

· If net sale proceeds <$60,000, seniors must top up all proceeds in cash into CPF RA. Cash bonus is pro-rated based on the cash top-up amount.

Amount committedC to their CPF RA for retirement payouts depends on proceeds, capped at $60,000 per householdB:· If net sale proceeds ≥$60,000, amount committed must be $60,000.· If net sale proceeds <$60,000, amount committed must equal the net sale proceeds. Cash bonus is pro-rated based on the amount committed (see Table 2.)

Amount committedC to their CPF RA for retirement payouts depends on proceeds, capped at $60,000 per householdB:

· If net sale proceeds ≥$60,000, amount committed must be $60,000.

· If net sale proceeds <$60,000, amount committed must equal the net sale proceeds. Cash bonus is pro-rated based on the amount committed (see Table 2.)

Note:

A. Other eligibility criteria can be found in Annex A.

B. Further capped by the prevailing Full Retirement Sum.

C. Includes CPF housing refund and/or cash top-ups.

Higher maximum SHB quantum

Currently, eligible seniors qualify for the maximum SHB quantum of up to $30,000, with SHB bonus pro-rated at $1 bonus for every $2 top-up made. With effect from 1 December 2025, the Government will provide an additional $10,000 cash bonus to seniors who right-size to a 2-room or smaller flat, including Community Care Apartments. The additional cash bonus of $10,000 will apply regardless of the amount that the senior commits to their CPF retirement payouts, i.e. there will be no pro-ration based on the amount committed. Including this additional $10,000 cash bonus, the maximum SHB quantum that eligible seniors may receive will be increased to $40,000.

Extending SHB to senior private residential property owners with AV between $21,000 and $31,000 when they right-size

Currently, only seniors who own an HDB flat or private residential property with an AV of $21,000 or less are eligible for SHB. To provide support to more seniors living in lower-value private residential properties, the Government will extend SHB to seniors who sell their private residential property with AV between $21,000 and $31,000. However, this group of seniors will receive a lower SHB quanta of up to $10,000 if they right-size to a 3-room flat, or up to $20,000 if they right-size to a 2-room flat. With this extension, more than 15,000 additional seniors can qualify for SHB. Altogether, SHB will now cover more than 3 in 4 residential properties. Details of the higher SHB quantum and extension of SHB to more residential properties are set out in Table 2, with illustrations of how SHB is computed in Annex B.

Table 2: Changes to the SHB cash bonus quantum and coverage

Flat type of new flat after right-sizing

Seniors who own an HDB flat or private residential property of AV ≤ $21,000

Seniors who own a private residential property of $21,000 < AV ≤ $31,000

3-room flat (excluding 3-room terraces)

Up to $30,000, with cash bonus pro-rated at $1 bonus for every $2 committed towards CPF RA for retirement payouts

[From 1 Dec 2025] Up to $10,000, with cash bonus pro-rated at $1 bonus for every $6 committed towards CPF RA for retirement payouts

2-room or smaller flat (including CCAs)

Same as above[From 1 Dec 2025] Additional $10,000 cash bonus (not pro-rated) on top of bonus above, for right-sizing to a 2-room or smaller flat

Same as above

[From 1 Dec 2025] Additional $10,000 cash bonus (not pro-rated) on top of bonus above, for right-sizing to a 2-room or smaller flat

Total maximum bonus

Up to $30,000 (if they right-size to a 3R flat)Up to $40,000 (if they right-size to a 2R flat)

Up to $30,000 (if they right-size to a 3R flat)

Up to $40,000 (if they right-size to a 2R flat)

Up to $10,000 (if they right-size to a 3R flat)Up to $20,000 (if they right-size to a 2R flat)

Up to $10,000 (if they right-size to a 3R flat)

Up to $20,000 (if they right-size to a 2R flat)

These three enhancements will take effect from 1 December 2025. Eligible seniors who wish to benefit from these enhancements may apply for SHB after these enhancements are implemented.

Extending greater Support for seniors in their retirement years

Besides SHB, seniors can also tap on other monetisation options to unlock the value of their flats to supplement their retirement income. Those who prefer to live in their existing HDB flat can rent out their spare bedroom(s) or consider selling part of the remaining lease of their flat back to HDB under the Lease Buyback Scheme (LBS).

The Government remains committed to supporting seniors and encourages Singaporeans to plan ahead to ensure financial stability to meet retirement needs.

Issued by: MND & HDB

Date: 5 March 2025

[1] CPF housing refund refers to the CPF principal amount withdrawn to purchase a property and the accrued interest that needs to be refunded after selling the property. For seniors (i.e. aged 55 and above), CPF housing refunds will be first refunded to the RA up to members’ cohort Full Retirement Sum. Any balance housing refund will remain in the Ordinary Account.

[2] ‘Proceeds’ is defined as the selling price of the current property minus the sum of any outstanding loan on the current property, purchase price of the next flat, resale levy payable, and subsidy recovery for Plus and Prime flats.

Annex A: Eligibility Criteria for Silver Housing Bonus

Annex B: Illustrated examples