In Singapore, where homeownership is prevalent, many retirees find themselves asset-rich but cash-poor. Effectively leveraging your property can transform this illiquid asset into a steady income stream, ensuring a comfortable retirement. Here's a step-by-step guide to help you navigate the available options.

1. Downsizing Your Home

Selling your current property and purchasing a smaller, more affordable one can free up substantial funds. This approach not only reduces maintenance costs but also provides a lump sum that can be invested or saved for future needs.

Steps to Downsize:

• Assess Your Needs: Determine the space you require and identify suitable smaller properties.
• Market Research: Understand current property values to ensure you sell and buy at optimal prices.
• Financial Planning: Calculate the proceeds from selling your home and plan how to allocate these funds effectively.

For eligible seniors, the Silver Housing Bonus (SHB) offers up to $30,000 when you sell your current flat and buy a 3-room or smaller HDB flat. To qualify, at least one owner must be a Singapore Citizen aged 55 or above, and a portion of the sale proceeds must be used to top up your CPF Retirement Account (RA).

2. Participating in the Lease Buyback Scheme (LBS)

If you prefer to stay in your current HDB flat, the LBS allows you to sell a portion of your flat's lease back to HDB. This provides a lump sum and monthly payouts while you continue living in your home.

Steps to Participate in LBS:

• Check Eligibility: Owners must be at least 65 years old, with at least 20 years of lease remaining.
• Lease Retention: Decide on the length of the lease to retain based on your age and preferences.
• Application Process: Submit your application through HDB and await approval.

Proceeds from the LBS are used to top up your CPF RA, ensuring a lifelong monthly income through CPF LIFE.

3. Renting Out Your Property

Generating rental income is a viable option, especially if you have alternative accommodation. This approach provides a regular income stream without selling your property.

Steps to Rent Out Your Property:

• Fulfill Minimum Occupation Period (MOP): Ensure you've met the MOP requirements for your HDB flat.
• Market Your Property: List your property on rental platforms and engage with potential tenants.
• Legal Compliance: Adhere to HDB or URA regulations regarding tenancy agreements and rental periods.

Renting out spare rooms is also an option if you prefer to stay in your home while earning additional income.

4. Utilizing Home Equity

For private property owners, tapping into home equity through financial products can provide funds without selling the property.

Steps to Utilize Home Equity:

• Consult Financial Institutions: Discuss available products like reverse mortgages or equity release schemes.
• Evaluate Terms and Risks: Understand the interest rates, repayment terms, and potential implications on inheritance.
• Make Informed Decisions: Consider consulting a financial advisor to assess suitability based on your financial situation.

It's essential to ensure that any financial product chosen aligns with your long-term retirement goals.

5. Pledging Your Property to Meet CPF Retirement Sum

If you're unable to meet the Full Retirement Sum (FRS) in your CPF RA, pledging your property allows you to set aside the Basic Retirement Sum (BRS) instead, enabling you to withdraw more CPF savings in cash.

Steps to Pledge Your Property:

• Determine Shortfall: Calculate the difference between your RA balance and the FRS.
• Pledge Process: Submit the necessary documentation to CPF Board to pledge your property.
• Understand Implications: Be aware that pledging may affect your CPF LIFE payouts and that proceeds from any future sale of the property will be used to refund the pledged amount with accrued interest.

This option provides flexibility but requires careful consideration of future financial needs.