Can my parents retire ?

What are some retirement planning guides I can read up on ? My parents are in their 60s and will be retiring in the next one to two years. They are not financially savvy, i dont want them to keep working. Assets: \* 4 room HDB fully paid off. 60-70Y remaining in the lease. Non prime area. \* Dads CPF has hit BRS, mums CPF has not (housewife). \* Cash is mainly held in FDs / savings accounts \~200k combined. \* monthly they get \~1k from me and my brother, we can give more if required. \* modest retirement, eat kopitiam food, travel to JB or within SEA only. \* no medical/health conditions \* i estimate their monthly expenses to be less than 2k a month on average. Questions: 1. Should they rent out room for steady retirement income? Or sell the 4rm and downgrade to 2rm/3rm then use the excess as retirmeent income. 2. Do we need to be concerned about lease decay ? What happens if the flat has 40Y left in the lease, no way to exit ? 3. What are some retirement guides we can read up on.

13 comments held Reddit says 0 on reddit ↗

u/Watashiwadesu_boss 1 2 hours ago

They are 60s. By the time left 40 years in hdb, they alr 90. Why worry about decay. The only one worrying about it is only you.
u/SangerGRBY OP 1 2 hours ago

We will both get BTOs. What happens to the flat 20-30 years from now ? Sell back to HDB isit ?
u/mrmrdarren 1 1 hour ago

Can look at lease buyback scheme in that case
u/Versyl505 1 2 hours ago

Insurance? Where u and ur bro stay if downgrade? Is it an option for them?
u/SangerGRBY OP 1 1 hour ago

They have AIA goldmax B plan we are paying the excess that medisave doesnt cover. He already has a resale. I am planning to apply next year with my gf, will get resale / SBF if i dont get by 2030. Open to staying with them as they grow older.
u/CutFabulous1178 1 2 hours ago

My friend mentioned to me that there’s this govt lease buy back scheme They basically buy back the lease of the youngest person, the proceeds is used to top up CPF. That way they have a roof over their head, money in the bank. You can explore and see if it suits them.. obviously there’s caveats, being after they pass on the house goes to the govt (duh.. it’s in the name, but you know how some Redditors can want their cake and eat it too).. So check it out
u/SangerGRBY OP 1 1 hour ago

Thank you, i will read into this. I am curious if it makes more financial sense for them to exit the current flat in next few years then downsize to a 2rm flat. Neighbouring units listed 700k - 800k.
u/upsideup2000 1 2 hours ago

They got minimum 950 cpf life plus 1k from you. Seems ok for their spending. No need to downgrade.
u/SangerGRBY OP 1 1 hour ago

What happens to the HDB once they pass ? Sell back to HDB ?
u/MartinRouter 1 1 hour ago

Will be passed down to you/brother, but will need to sell to open market within 6 months if you already have HDB. This is assuming they didn’t opt for the lease buyback scheme
u/essiah74 1 1 hour ago

If your parents sell and are above 55, your parents cpf accounts have to be topped up to min retirement sum first before the proceeds can be used to buy property again. Maybe better to lease out a room?
u/WestofSin 1 1 hour ago

Their healthcare coverage taken care of? Just because they have no medical conditions now doesn't mean they won't develop any in the future.
u/yamanoA4 1 1 hour ago

I would strongly recommend not guessing the expenditure. I would strongly suggest that you find some way eg through bank account downloads or other means to track their expenditure. 2k a month or lesser combined is very low if they are paying for everything eg low end socialising and eating a healthy diet plus keeping lights on plus holidays