Forum: Parents prefer not to burden children financially
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The Lease Buyback Scheme was introduced to improve the retirement adequacy of elderly flat owners by enabling them to sell a portion of the lease of their HDB flat to the Government (Seniors selling flat leases and downsizing affect younger generation, July 24).
The proceeds can be used to top up one’s Central Provident Fund (CPF) Retirement Account savings and join CPF Life. In return, they receive a stream of income in their retirement years, while continuing to live in their flat.
The Lease Buyback Scheme has been enhanced to allow households the flexibility to choose the length of lease to be retained, based on the age of the youngest owner – that is, retained lease lasting till the youngest owner is at least 95 years old.
Hence, all owners must be aged 65 or older to be eligible. This ensures that the retained lease will likely cover them for the rest of their lives, and allows them to receive CPF Life payouts immediately after joining the scheme.
As more adult children move out and do not intend to live with their parents after marriage, as demonstrated by the oversubscription of Build-To-Order flats, there is little need to bequeath one’s flat to one’s children.
Parents would prefer to be financially independent than to rely on their children for monthly maintenance as they do not wish to burden them since they have a family of their own to support.
Lee Tai Huat