Actual Case Study
The following 4 cases are actual cases of seniors that right size to a smaller property towards their twilight years.
HDB > HDB
Mr Tan is 54 years old this year and stay in a 5 room HDB flat. He is required to keep $166,000 in his CPF Retirement Account upon reaching 55 years old. Here, he has planned to downgrade to a smaller HDB flat. After working out a detailed financial calculation with him, he can safely downgrade to a fully paid HDB flat before his CPF is locked up in his CPF Retirement Account.
Condo > HDB
Mr and Mrs Liew are in their 60s. They stay in a private condominium with their grown up children. They plan to downgrade to a HDB resale flat after their children got married. They have an existing $100,000 in outstanding loan. After selling their condominium and fulfilling their CPF Basic Retirement Sum, they are able to fully pay a HDB resale flat and yet have $500,000 cash for retirement.
Landed > HDB
Mr Tan is 85 years old and stay in a landed property in Hillview Garden Estate. Age is catching up and he plan to dispose his landed property so that he can split the sales proceed among his children. He purchase a fully paid HDB flat that is to be inherited by his grandson.
HDB > Studio Flat
Mr and Mrs Leong are in their 60s. They stay in a 4 room flat in Choa Chu Kang. They do not have children. After selling their HDB flat and fulfilling their CPF Basic Retirement Sum, they are able to fully pay a HDB Studio flat and yet have $200,000 cash for retirement.