Up to S$40,000 cash bonus for seniors who right-size to HDB 3-room flat or smaller

By end-2025, more seniors in Singapore will be eligible to get cash bonuses of up to S$40,000 when they right-size their property to a three-room or smaller Housing and Development Board (HDB) flat.

These are part of upcoming enhancements to the Silver Housing Bonus (SHB) that were announced during the Ministry of National Development's Committee of Supply debate on Mar. 5.

For those unfamiliar with the SHB scheme, it currently allows seniors aged 55 and above to get cash bonuses of up to S$30,000 by selling their HDB flat or private property with an annual value of S$21,000 or less, to purchase a three-room or smaller HDB flat.

Since it was introduced in 2013, about 2,535 households in Singapore have benefitted from the SHB, based on December 2024 statistics provided by the Ministry of National Development (MND).

In his speech, Lee highlighted three enhancements that will be made to the SHB scheme, to supplement retirement incomes for seniors who right-size to a smaller property.

These will take effect from Dec. 1, 2025.

Adjustment to eligibility criteria

Firstly, the SHB eligibility criteria will be adjusted to allow seniors to qualify for SHB by committing to a net increase of up to S$60,000 in their CPF Retirement Account (RA) after right-sizing.

This amount can come from their CPF housing refunds — the CPF amount they withdrew to purchase the property, plus interest — that would be returned to their CPF RA upon selling the property.

This means seniors may no longer need to make a cash top-up to qualify for the SHB cash payout, making it easier for them to benefit from it, said Lee.

Currently, seniors need to provide a cash top-up of up to S$60,000 from the net proceeds of their flat sale, to enjoy the S$30,000 SHB cash bonus.

If the net sales proceeds are less than S$60,000, seniors must top up all proceeds in cash to their CPF RA.

They would get a pro-rated cash bonus at S$1 bonus for every S$2 of cash top up into their CPF RA.

The changes to eligibility for the SHB are reflected in the table below:

Higher maximum SHB quantum

The government will provide an additional S$10,000 cash bonus under the SHB for seniors who right-size to a two-room or smaller flat, including Community Care Apartments (CCAs).

This additional cash bonus of S$10,000 will be provided regardless of the amount that the senior commits to their CPF retirement payouts.

It means that from Dec. 1, 2025, eligible seniors can receive up to a maximum of S$40,000 cash bonus under the SHB, up from S$30,000.

More private residential property owners eligible for SHB

Currently, only seniors who sell a HDB flat or private residential property with an annual value (AV) of S$21,000 or less are eligible for the SHB payouts.

The SHB criteria will be expanded to include seniors who sell their private residential property with an AV between S$21,000 and S$31,000.

From Dec. 1, 2025, this group of seniors can receive an SHB cash payout of up to S$10,000 if they right-size to a three-room HDB flat, or up to $20,000 if they right-size to a two-room HDB flat or community care apartment.

The cash bonus will be pro-rated at S$1 for every S$6 committed towards the senior's CPF RA for retirement payouts.

Seniors who sell their private residential property with an AV of S$21,000 or less will be eligible for a SHB bonus of up to S$30,000 if they purchase a three-room flat, or up to S$40,000 if they right-size to a two-room flat.

Lee said that with this extended criteria, more than additional 15,000 seniors will qualify for SHB.

As a whole, SHB will cover more than 75 per cent of residential properties once the changes are implemented, Lee added.

EASE scheme extended to private properties

To support seniors to age-in-place, MND is introducing senior-friendly enhancements across public and private estates.

Currently, only residents in HDB flats can opt for senior-friendly fittings to be installed under subsidised rates, as part of the Enhancement for Active Seniors (EASE) programme.

Lee said that MND will expand EASE to include households with seniors living in private properties.

EASE (Private) will be available to Singapore Citizen households in private properties, with at least one senior 65 years old and above, or who are between 60 and 64 years old and requires assistance with at least one of the Activities of Daily Living (ADLs).

Such households will be eligible for subsidies to engage a contractor from a pre-qualified list to supply and install senior-friendly fittings in their homes, such as grab bars.

The subsidy will cover 75 per cent of the cost of selected senior-friendly fittings, up to a cap of S$1,200.

More than 70,000 households with seniors living in private properties would be able to benefit from EASE (Private), Lee noted.

It will be piloted as a three-year programme, and it is targeted to be launched by the first quarter of 2026.

Top image from Agency of Integrated Care/Facebook