Come 2009, retirees who are 62 years old and lives in a 2 or 3 room HDB flats can sell part of his flats remaining lease back to HDB. In return, he will receive a cash payment of $5000 and an annuity payout of about $500 monthly from CPF LIFE till he dies. If he dies early, his family member gets the pro-rated refund from the HDB.
MP ( West Coast GRC ) ask if owners of bigger units can qualify for the scheme ? The reply was, this can be examined after the scheme was implimented and feedbacks given.
The question is ....WHO STANDS TO GAIN, THE OWNER OR THE HDB. In my opinion, the HDB will surely benefit. Lets have a simple calculation.
Assuming retiree Mr Seow Mah sells back 30 years lease to HDB at age 62. Also assuming he dies at age 92 .So $500 X 12 X 30 = $180,000 This is what Mr Seow Mah receives for the remaining 30 years. When Mr Seow Mah dies, his flat goes to HDB.
Alternative if Mr Seow Mah rents out one of his rooms for $300 per month for the next 30 years, he should still survive and ultimately when he dies, the house will still belong to his family, not the HDB. So which way shall we go ? I think most of the time, the authorities are thinking most Singaporeans are stupid .
