Singapore's Singapore Development Minister Lawrence Wong said on Friday (November 16) that details of the LBS plan for all apartments would be ready by the beginning of 2019.
The announcement that LBS will be extended to cover five-room apartments larger than done in early August this year.
Under LBS, flat owners aged 65 and over who meet a number of other criteria can sell part of the lease of their apartment for housing Board (HDB) while maintaining the length of the lease according to the age of the young owner.
The proceeds from this sale will be used to deploy the retirement account of the Central Provident Fund (CPF), which can then be used to purchase CPF's life plan, which provides people with a monthly income for life.
LBS was highlighted on Mr. Wong's blog on Friday in a statement which he discussed giving more help for HDB executives who have flat financial planning for their retirement.
Mr. Wong said that LBS will own a flat net and a smaller amount of revenue compared to other options such as "right size" to another apartment, or rent the house in the existing room.
However, this will allow them to continue to remain in the same apartment, which some may prefer.
Mr. Wong also said that the retirement planning process and unlocking one value of HDB flat can be complex and there are many factors to consider.
Therefore, he said that he asked HDB to see what else it could do to provide more personalized information for the elderly.
Recognizing that the circumstances of each individual is different, Mr. Wong said that HDB offers comprehensive one-on-one financial counseling sessions for seniors.
He also suggested that HDB can provide information about the estimated revenue that homeowners can get from the various options they have with their apartments when they retire.
Mr. Wong said that when planning to retire, people should look at all the assets they own, which includes the income from work and savings in their CPF accounts as well as other areas – and not just the value of their existing apartment.
He wrote: "Financial planning for retirement is something we must take seriously. With HDB flat, this process is also linked to various monetization options to open the value of their apartments.
"Before deciding on any particular option, it is better to do homework and work out the amounts carefully."
He also noted that the MoneySense campaign, Singapore's national financial education program, is expected to launch a series of financial planning tracks in the coming months.
The first such cycle will take place on November 17 and 18 at our Tampins hub (Festive Holiday East), and will be a section on retirement and real estate planning.Can visitors learn more about the various housing options and reputation, and determine which one best suits their needs.
Mr. Wong said: "With the ages of our population, the Singaporeans will examine ways to prepare for their retirement, and we will do more to help everyone in this process so that they can be safe at home for life, and also enjoy confidence in their golden years."