photo of Khaw Boon Wan from youtube

In his latest blog post, Minister of National Development Khaw Boon Wan said that he will introduce a new 2-room HDB flat option for elderly aged 55 and above. Called the 2R Flex scheme, the elderly will be allowed to purchase a 2-room HDB flat with a shorter lease, ranging from 15 to 45 years, that allows them to own the flat until they are at least 95 years old. The price of the 2-room HDB flats under this options should be less than half of other 2-room HDB flats on a 99 year lease.

photo of Khaw Boon Wan from youtube
photo of Khaw Boon Wan from youtube

You may read Khaw Boon Wan’s blog post here.

This is part of the Singapore Government’s direction to unlock more housing money for elderly Singaporeans to fund their CPF Minimum Sum needs. For example, an elderly Singaporean couple aged 55 can sell away their 3 room flat for S$300,000 and purchase a 2-room flat with 40 year lease for S$50,000, effectively netting them S$250,000 to be locked away in CPF Minimum Sum, also recently packaged as the “Full Retirement Sum”. The Full Retirement Sum must be met before any Singaporean can get to withdraw cash from their CPF.

The current CPF Minimum Sum is standing at S$161,000 and has been consistently increased by Prime Minister Lee Hsien Loong and it has doubled from S$80,000 in his 12 years of reign.

55th birthday on or after Full Retirement Sum (after adjustment for inflation)
1 July 2003 $80,000
1 July 2004 $84,500
1 July 2005 $90,000
1 July 2006 $94,600
1 July 2007 $99,600
1 July 2008 $106,000
1 July 2009 $117,000
1 July 2010 $123,000
1 July 2011 $131,​000
1 July 2012 $139,000
1 July 2013 $148,000
1 July 2014 $155,000
1 July 2015 $161,000