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Retirement Planning

Retirement planning is in the mind of most baby boomers today. If you are 55 years old and above and belong to CPF Board's Club 55. You should start to plan ahead for your family. Have you wonder what are the various options available to you? Which routes is the best for my family? Should I sell my property now or should I hold on to it? How much money can I unlock from my property? These are real questions that you should be asking before you embarked on your retirement road map.

Retirement Roadmap

This retirement roadmap will give you an overall what are the various housing options available to you pertaining your most important asset you holding on to.

If you are staying in a HDB flat now. You can either right-size to a smaller resale HDB flat, studio flat or even lease buy back to HDB. If you are currently staying in a private property, you will have more options. you can right-size to a resale HDB flat first before exploring your plans further down the road.

Key Consideration

Your decision you made today will depend mainly on the following 3 consideration: time, CPF and cash.

Timeline

After selling your current place, where should you move to? Should you sell first before buying?

CPF

After setting aside your CPF Retirement Account, how much CPF can be used for the next house?

Cash

After selling and buying your next home, how much cash can you keep for retirement?

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.

During the meet up

During the meet up, I will understand your current situation and explore what are the various options available to you. I will assist to do a detailed financial calculation to further explore your options before advising how to proceed and execute your retirement plan accordingly.

If you are still unsure regarding your retirement plans. You are most welcome to brew a cup of hot coffee and i will drop by your place for a casual chit chat. I am very sure our discussion will be very fruitful and you will definitely gain insight into your retirement plan with confident! Contact me here!

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