We thank Mr Cheng Choon Fei for his letter (Make lease buyback more senior-friendly; Aug 23).
The Lease Buyback Scheme (LBS) allows seniors to monetise their flat for their retirement needs while continuing to live in it. This is done by selling part of their remaining lease to HDB.
Under this scheme, seniors use part of their proceeds to top up their CPF Retirement Account and join CPF Life to receive a monthly income stream for life.
The CPF top-up requirement seeks to strike a balance between channelling the proceeds towards a retirement annuity on the one hand, and cash proceeds on the other.
Seniors who take up LBS are required to top up their CPF savings to reach the current Full Retirement Sum. This amount varies with households and it ensures that their monthly payouts are adequate to meet their basic living expenses.
The qualifying age of 65 for LBS allows seniors to immediately receive their monthly CPF payouts when they take up the scheme.
Nevertheless, HDB is prepared to exercise flexibility on the age requirement, especially for those who are in ill health or financial difficulties.
To know more about the LBS or other monetisation options, approach any HDB branch, or call 1800-225-5432.
Lim Lea Lea (Ms)
Director (Branch Operations)
Housing & Development Board