REVERSE MORTGAGES FOR ELDERLY WITH HDB FLATS

Dr Kanwaljit Soin asked the Acting Minister for National Development if the Housing and Development Board is considering making feasible the idea of reverse mortgages for the elderly with HDB homes.

Mr Lim Hng Kiang: The problems faced by an ageing population were touched on by the President in his Address to the House in January 1994. One of the measures the Government has taken to address this issue is to raise the Minimum Sum under CPF over time, to provide for a longer lifespan and to enable members to withdraw higher amounts each month after they retire at 60. Singaporeans are also encouraged to purchase annuity policies when they are younger, so that they can be assured of a steady stream of income in their old age. Furthermore, elderly owners of HDB flats who find less need for larger flats can always sell their flats, move to smaller flats, and live off the profits.

At present, the financial needs of our elderly are largely well taken care of by themselves, and their families. Very few need to resort to reverse mortgages of their HDB flats as a means of financial assistance. Most elderly home-owners want to leave their homes as an inheritance for their children.

HDB will continue to monitor the situation and assess the demand for reverse mortgages.