The BBC reported Steve Webb, Britain’s former Pensions Minister, as saying that downsizing your home to give yourself an income in retirement is unrealistic. He said that the 3 million British people who are relying on their homes for retirement are in for a shock. Most people doing so would experience a slump in living standards on retirement, Mr Webb said in a report for an insurance company.

The ex-Minister saying that most British had a ‘downsizing delusion’ suggested that even downsizing is not as easy an option because retirees may still have children living with them, or may be still paying their mortgage loans.

The Government of Singapore though still suggests that monetising your HDB flat should form a part of most Singaporeans plans for retirement. In a website explaining this, the Government said:

“For elderly who want to convert part of their housing asset into cash, they have various options to monetise their flat to supplement their retirement income, depending on their individual needs, preferences and family circumstances. They can choose to:

  1. Sublet bedroom(s), or sublet the whole flat and live with their children for family support.
  2. Take up the Lease Buyback Scheme (LBS).
  3. Move to a smaller flat and take up the Silver Housing Bonus (SHB).”

Siti Zubeidah is a Marketing Director with ERA Realty Network Pte Ltd however believes that Singaporeans should “plan for retirement early and don’t depend on your HDB flat as a retirement plan.”

She further said: “Look into other forms of retirement plans or purchasing another private property to fund your retirement as the rent that your tenants pay will contribute towards your equity.”