Elderly not ready to leave flats for bonus

SINGAPORE: The new Silver Housing Bonus offers the elderly the chance to unlock their savings, but many say they are not keen to downgrade to a smaller flat just yet.

Of more than 30 seniors interviewed in estates such as Queenstown, Toa Payoh, Serangoon and Tampines, only a handful said they found it attractive enough to consider downgrading.

Many said their choice was due to familiarity with their neighbourhood, a desire to remain close to their children, the inconvenience of having to relocate and not needing the money at this time.

Still, the scheme – announced by Deputy Prime Minister and Finance Minister Tharman Shanmugaratnam during last Friday’s Budget speech – was praised by residents as a step in the right direction.

Under the programme, the Government will give a bonus of up to S$20,000 per household to elderly Singaporeans aged 55 and above who sell their existing flats and move to those with three rooms or fewer, or to studio apartments, will get S$15,000 in cash and S$5,000 in their Central Provident Fund (CPF) accounts.

Many of the residents said the S$15,000 bonus would be a good option if they ever needed cash, especially in an environment of economic uncertainty and rising living costs.

“The cash paid upfront would be good for those with financial difficulties,” said retiree Alan Foo, 5, who lives in a three-room flat in Toa Payoh.

Sentimentality was the top reason given by those wishing not to downgrade. But most admitted their hesitation was also due to not knowing exactly how much cash they would receive if they downgraded.

Academics interviewed saw the elderly’s reasons for not warming to the Silver Housing Bonus, but agreed it would prove useful, given Singapore’s fast-ageing population.