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Written Answer by Mr Tan Chuan-Jin, Acting Minister for Manpower, to Parliamentary Question on Impact of Schemes to Monetise HDB Flats on Retirement Adequacy

Notice Paper No. 456 of 2013 For The Sitting On 11 Nov 2013
Question No. 1628 For Written Answer

MP: Ms Tan Su Shan

To ask the Acting Minister for Manpower how will the Ministry adjust its public messaging to raise awareness on the importance of retirement adequacy if many Singaporeans do not find the schemes on unlocking the value of their HDB flats palatable.


  1. First, let me share that the CPF Board has been actively reaching out to CPF members to raise awareness on the importance of retirement planning, and providing information to help them plan for their retirement. The CPF member education initiatives are conducted through various channels and platforms, such as public talks, events and online outreach via the CPF website. CPF Board also encourages CPF members to take advantage of the voluntary contribution schemes such as the Minimum Sum Topping-up Scheme (MSTU) where they can top up their CPF accounts or those of their loved ones to better secure their retirement adequacy.
  2. Recently, the CPF Board launched its Are You Ready? Initiative to encourage Singaporeans to think carefully about their cash flow management, healthcare and home financing, and retirement planning. For example, members who are getting married and buying their first home, are advised and provided the tools to do their sums to buy a house within their means. To further extend its reach, CPF Board also works with other partners such as MoneySENSE, Financial Planning Association of Singapore and Housing Development Board.
  3. The Enhanced Lease Buyback Scheme (Enhanced LBS) and Silver Housing Bonus (SHB) Scheme were introduced earlier in February this year to provide more options to elderly Singaporeans who wish or need to unlock the value in their housing assets to supplement their retirement savings. We recognise that elderly Singaporeans today may not consider housing monetisation as the preferred option to provide for their retirement. Those who have sufficient savings or family support may also not feel the need to monetise their homes. The Government will continue to reach out to elderly Singaporeans so that those who need to monetise their homes are aware and understand the benefits of the schemes.
  4. At the same time, CPF Board will also continue to enhance its member education efforts to encourage and help CPF members to plan early for their retirement, to not overstretch themselves in their home purchase and leave enough savings in their CPF accounts for their retirement.